Technical Update: Automated Treasury Delegations
We would like to inform you about the upcoming changes to our automated treasury delegations and how delegations from the treasury are distributed among the validator set will be put into effect in the near future.
The objective of the changes is to better reward network commitment and long term sustainable network participation and consequently increase $NGM staking rewards for our token holders.
Staking Rewards: $NGM token holders can expect staking yield to increase from 17% to approximately 27% .
What will change?
The treasury delegations are intended as a “Universal Basic Income” to help cover validator operating costs. As validators have different commission levels, delegations will be adjusted accordingly, so that high commission validators receive a smaller delegation than their lower commission peers.
Validators will also be rewarded for having skin in the game and taking a long term view of the project. As such self delegations are rewarded with a delegation bonus, calculated as the self-delegation multiplied with a constant (see below).
Finally, to incentivise outreach and promotion of their e-Money validator service, the treasury will also match the first 250000 NGM community delegations.
Moving forward it is the intention to adjust delegations on a monthly basis using the below algorithm. The initial rebalancing of delegations will take place on June 14th, 2021, in order to allow time for validators to make changes
Read more about delegation algorithm & how total delegation per validator is calculated in our GitHub post:
e-Money pioneering blockchain sectors first interest-bearing stablecoins
e-Money is a blockchain-based payment platform committed to bringing financial inclusion and help people around the world to have easy access to digital currencies. Built on Cosmos technology, the e-Money protocol is built for the issuance of a range of interest-bearing currency-backed stablecoins reflecting various world currencies. Each token is backed by a reserve of assets denominated in its underlying currency. e-Money currently supports the eEUR, the eCHF, and tokens backed by Scandinavian currencies (eNOK, eDKK, and eSEK) with a host of additional currencies pegged for release in 2021. The e-Money ecosystem has a second token class, the Next Generation Money (NGM) token is a staking and rewards token, users can stake NGM to secure the e-Money network.
The project is dedicated to total transparency with quarterly reserve audits performed by Ernst & Young. Unlike most existing stablecoins which aim to maintain a static 1:1 peg with their underlying assets, the value of e-Money’s currency-backed tokens continually shifts in line with the interest accrued on the reserve assets. This means that holders benefit from the interest accrued on their assets while they sit securely in your wallet.
The e-Money blockchain supports instant payments at scale and includes a DEX for easy conversion between currencies. e-Money has already integrated with Ethereum and expects to integrate with Binance Smart Chain, Cosmos Hub, Avalanche, Polygon and Elrond in 2021.