API3 is beyond excited to announce that at the time this article is posted, the authoritative DAO and its staking pool will be live on Ethereum mainnet. API3 token holders will be able to visit https://api3.eth.link/ to stake to receive rewards and voting power.
The authoritative DAO and its staking pool enhances the API3 token with three utilities:
- Staking API3 at the pool grants voting power at the authoritative DAO, which will have full control over the project.
- Staking API3 at the pool yields weekly rewards in an automatic and compounding way. These rewards become withdrawable after a year, serving as the game theoretic mechanism that incentivizes benevolent governance.
- The DAO will be able to utilize the staked tokens to back the insurance products it will provide to secure its services. This both incentivizes governance to be mindful about the security of its services, and also utilizes the liquidity in the staking pool.
In addition, staking will act as an indicator of being a long-term stakeholder in the project, and will be used to bootstrap governance communities for newly-found partner DAOs through strategies such as airdropping tokens to them.
The staking rewards will start at an APY of 47.12% and automatically adjust to incentivize 50% of the total API3 token supply (which corresponds to 50,000,000 API3, initially) to be staked. In other words, every week, if the amount staked at the pool is less than 50% of the total supply, the reward will increase, and vice versa. This is to ensure that there are enough API3 tokens staked at the pool at all times to secure the governance of the DAO, its treasury and the solvency of the upcoming insurance products. The parameters that regulate the rewards are governable by the DAO itself.
The first staking reward will be paid out on July 15, 00:00 UTC, meaning that there is a full week to stake ahead of us. During this first week of initialization, proposals will be disallowed. For more information about this new phase in decentralized governance, tune in to our ongoing DAO & Staking series.
Thank you very much for your patience and support! Now, we would like to invite you to take a seat at the governance table and help API3 reach its vision for fully-decentralized solutions based on first-party oracles.
