FHM Staking Amendment — Introducing Accelerated Staking

TL;DR

• A landslide 100% votes in favor of the proposal to implement the Staking Amendments
• Modification of the rebasing model as FHM moves to a more deflationary token structure and away from OHM model
• Accelerated Staking enables investors who take part in the current model of staking to receive much less when compared to previous rewards, while rewarding users who choose to lock their staked tokens in 30-day increments with the full amount of FHM’s calculated APY
• Accelerated Staking system will be built upon further, offering 60-day, 90-day, and higher locking times with rewards that increase alongside the investor’s long-term commitment

Greetings FHMily!

Thank you for your active participation in FIP-0005 Staking Amendment Proposal.

It is our honor at FHM and Balance to serve the community and we take pride in bringing the most innovative, disrupting, and forward-thinking ideas to life.

In this article, we would like to summarize the Staking Amendment, while briefly explaining the rationale behind it. We will also share the results, and finally, introduce Accelerated Staking and answer some of the frequently asked questions.

If you have further comments, suggestions, or ideas, please do not hesitate to comment below or reach out on our Discord, Telegram, and other social channels.

Introducing Accelerated Staking

At FHM and Balance, we are working tirelessly to ensure the continuous growth of the protocol. As such, we are introducing the creation of lock-up periods to reward long-term investors, thus beginning the shift away from the Olympus rebasing model.

Ever since the inception of the Balance ecosystem and USDB, we introduced products and services that enable strong utility cases for USDB. Amendments in the staking mechanism essentially modify the rebasing model as FHM moves to a more deflationary token structure. As the emissions reduce, demand for FHM becomes dependent on the usage of USDB and adjacent projects, which means creating new products and tapping into DeFi, e-commerce, and those that will appeal to more conservative investors.

As you may know, staking, currently, is a system that offers the maximum possible APY from the FHM protocol. Users may stake or unstake as often as they wish at no penalty. They may transfer sFHM across networks to maintain their rewards while accessing other liquidity options in DeFI. With the introduction of Accelerated Staking, however, things are going to change for the better. Users who take part in the current model of staking will receive much less when compared to previous rewards, while users who choose to lock their staked tokens in 30-day increments will receive the full amount of FHM’s calculated APY. This system will be built upon further, offering 60-day, 90-day, and higher locking times with rewards that increase alongside the investor’s long-term commitment.

You will be able to find accelerated staking at https://app.fantohm.com/

On an even more exciting note, these locked staking periods can and will be intermixed with our compounding bond model to produce the maximum competitive long-term potential as an investment.

By establishing lockup periods, FHM stands a better chance of returning value to investors who believe in the protocol’s team and desire to see it grow over the long run. By adopting this structure, the protocol will be able to move further away from the legacy structure and create its own narrative.

As mentioned earlier, we are updating the reward rate in the current (3,3) staking pool to a 3-digit number +-150% APY. Short-term stakers will still receive rewards from the protocol, but they will be significantly less than long-term investors.

Amendment Proposal Results

A landslide in favor of the proposal with 100% votes to implement the proposed changes with zero resistance. We can only re-iterate the words from @thedoc (as mentioned in our Discord),

“Many thanks to all who voted. 100% yay votes sure is a sign of a well-informed community. Please stay tuned for an update on the implementation.”

Source: Fantohm DAO proposal: FIP-0005 Staking Amendment Proposal (snapshot.org)

Frequently Asked Questions

Q. What are the next steps as an investor that holds sFHM and wsFHM in Fantom and Moonriver Network?

A. Investors who hold sFHM tokens, either on Fantom network or on Moonriver, and want to be part of the 30-day pool, will need to first manually wrap their sFHM tokens, and then deposit their new wsFHM tokens to the pool. FHM protocol will not move the funds automatically because investors own their funds and can decide to participate in accelerated staking or not.

Q. Apart from adjusting rewards APY% and introducing 30 days of locked staking, what else is planned to be introduced?

A. We wrote a detailed article on what is planned. Please have a read on our medium. To summarize we plan to launch Financial NFTs, eCommerce, NFT Marketplace (but not just any), USDB Staking, Lending and Borrowing, xFHM, Terra Bridge, and much more.

All of these future implementations are intended to increase USDBs viability as a slippage-free vehicle for FHM investors while increasing our value proposition through additional revenue streams.

Q. How did we come to the proposal in the first place?

A. FHM and Balance ecosystem is adjusting the APY beyond the models as we plan to move away from the OHM structure. Dilution of the FHM token is the main concern addressed through the proposed amendment.

Q. The proposal mentioned 60-day warmup staking as well. Does the protocol reward such a staker more?

A. Yes, the 60-day pool will have a higher yield at the moment of implementation v/s the 30 and the 0-day yield. Bear in mind that as more use cases come out for USDB, the yield will vary.

About FHM, USDB, and Balance

The Balance Organization is formed to administrate business development in service to the greater vision of the interplay between FHM and USDB. As such, profits from all ventures engaging USDB as a commercial exchange of value will be used to buy back and burn FHM in order to increase our deflationary velocity at a rate tied to our business success in product developments.

Find us on our channels to get in touch and join the community.