New KTON Staking

Based on the earlier discussion, DIP-5 proposes adjustments to KTON staking, aiming to separate it from Collator Staking within a one-month (30-day) transition period. Over time, the portion of newly issued RING allocated to KTON Staking (KTON Pool) will progressively shift to the new KTON Staking contract until the transition is complete. At that time, 20% of the newly issued RING will be allocated to the new KTON Staking contract (new KTON Pool).

30 Days Transition Period

30-day transition period

Please note that this adjustment will impact the existing Collator KTON Staking. Once the new KTON Staking mechanism is prepared, the original Collator KTON Staking will undergo a 30-day transition period to switch to the new system. Throughout this transition phase, the POWER of KTON in the Darwinia staking module will linearly decrease to zero, and the incentives associated with the old KTON Pool in the Collator Staking will correspondingly decrease to zero. The portion that has been reduced will be transferred to the new KTON Staking until the transition period is concluded.

Hence, once the transition period begins, you can stake your available KTON to the new KTON Staking contract. Following the conclusion of the transition period, no yield will be allocated to the original Collator KTON Staking, and the KTON held in the Collator Staking’s KTON Pool will be distributed to users via a scheduled on-chain runtime migration.

New KTON Staking Highlights

The upcoming changes will streamline the process of KTON staking, making it simpler and more user-friendly:

1. The mechanism for KTON obtained from RING deposits will remain unchanged, ensuring continuity for existing practices.
2. The calculation of yields for KTON staking will no longer involve the use of POWER, simplifying the process and removing complexity.
3. The previous 14-day waiting period following unstaking will be eliminated, allowing staked KTON to become immediately available, enhancing flexibility for participants.
4. With the new KTON pool no longer be charged commission fees by the collator, the staking yields for KTON are expected to be slightly higher compared to the original setup, provided all other conditions remain the same.

New KTON Staking may be launched in early March. Stay tuned on Darwinia’s twitter account for further updates on the new KTON staking! https://twitter.com/DarwiniaNetwork