The Next Phase of the GuildFi (GF) Staking Program

We are excited to be rolling out the next phase of the GuildFi staking program. Our current program began on 21 December 2021 and is set to end by 20 December 2022.

The following proposal will be available for all token holders to vote to start on 7 December 2022, 14:00 (UTC), and will last for one week. The staking program itself will begin in January 2023.

From now till 6 December 2022, 14:00 (UTC), we are gathering feedback from our GuildFi community on the proposed staking mechanics below and refining it before going up for a community vote.

Why is this important?

Our staking program provides GF token holders the opportunity to share in the success of the GuildFi project by rewarding our users with additional tokens and other benefits, such as priority in our partners’ whitelists.

What staking mechanisms will there be?

There will be two staking options:

1. A GF Single-Staking pool with a built-in auto-compound function of up to one year, i.e. stake GF to earn more GF
2. A UNI-V2 GF-X liquidity pool, i.e. stake GF-X LP tokens in the GF platform to earn both swap fees (as is the case for any UNI-V2 position) and GF token rewards, where X refers to a stablecoin pairing or ETH pairing (depending on community discussion and voting outcomes).

Upon launch, every GF token investor staking in the current program can continue to stake in the next phase of the staking program. For those with locked staking, investors can stake their GF in the new pools once their tokens are unlocked.

How will the rewards be allocated?

We will allocate the staking rewards in the following manner:

• A total of 30m GF tokens will be allocated as the rewards, which will be proportionately split between the new and existing staking program based on Total Value Locked (TVL)
• 30% to GF Single Staking Pool
• 70% to GF-X Liquidity Pool, where X could be a stable coin pairing, e.g. USDT, USDC, or with ETH

Full details will be provided in the voting page.

Will there be a minimum lockup period in the new pools?

Stakers will be able to choose the length of time to lock up their GF tokens, from a minimum of 1 week to a maximum of 1 year.

In return, stakers will receive xGF tokens which will represent their share in the governance rewards pool as well as your voting power for the upcoming governance functions in future.

The amount of xGF stakers receive will be calculated based on the amount of GF deposited and the remaining lock duration, where 1 GF locked for one year = 1 xGF. Stakers’ xGF balance will decrease linearly over time and will reach 0 when it’s unlocked.

Example 1:

• Alice locked 100 GF for 52 weeks and received 100 xGF
• 26 weeks have passed. Alice’s xGF balance will become 50

Example 2:

• Ben locked 100 GF for 26 weeks, and received 50 xGF
• Ben then decided to get a higher multiple on his rewards so he extended his lockup from 26 to 52 weeks, and received an additional 50 xGF, bringing his total balance to 100 xGF

What if I staked GF in the existing pools?

For those staking in the existing pools, they will continue to run till all the tokens are unlocked, and will then be rewarded accordingly. Rewards will be reduced based on the APY of the new staking program.

New stakers will not be allowed to participate in the existing pools. Once unlocked, stakers will be required to unstake, claim their rewards and migrate to the new pools. For example, if you had staked GF for 52 weeks 10 weeks ago, rewards will still accrue for the remaining 42 weeks.

What will the community be voting for?

We will be putting the aforementioned new staking program up for community voting on 7 December 2022. Should the vote pass with a simple majority of >50%, we will proceed with the proposal.

How does the vote work?

• Only sGF token holders (those who are staking GF in the current staking pools) are eligible to vote.
• One sGF token (derived from the time weighted amount of GF tokens staked) is equivalent to one vote.
• A minimum threshold of 1 million sGF votes is needed to be met in order for the proposal to take effect.
• Only sGF tokens held in on-chain wallets will count, i.e. those held on Centralised Exchanges will not be included.
• A simple majority of >50% of the votes will be required for the proposal to take effect.

Note: All locked tokens from our investors, advisors, team and ecosystem funds will be excluded from calculations.

Discussion time!

Before the official vote begins, we would like our community to discuss this new proposal in our gf-governance-forum on Discord so we can gather feedback and adjust the new staking program accordingly before the final proposal is up and the voting actually starts.