GYSR v3: Tokenomics
GYSR has been live on mainnet for over two years — the protocol has distributed over $26M in rewards to 6000 users across 500 pools and 3 chains. And we have learned a lot more about incentive tooling in the process. We spent the last year rethinking, redesigning, and building the next generation of this technology, dubbed internally as GYSR v3.
GYSR v3 introduces key upgrades to the core incentives protocol, new powerful mechanisms (see Streams, Waterfalls), and a large expansion to the fee system. All considered, this means more flexibility, better interoperability, and improved tokenomics.
Current state
First, let’s recap the current state of tokenomics today:
- $GYSR is the ERC-20 utility token of the GYSR platform and ecosystem
- Users can spend $GYSR to increase staking rewards from specific pools
- Projects receive spent $GYSR as an ongoing source of funding
- $GYSR holders can earn protocol fees by staking in the Holder pool
At the time of writing, 4.5M $GYSR tokens have been spent by users, which is over 50% of the entire circulating supply. This perpetual value flow system has performed incredibly well in the wild.
For more background on $GYSR, check out the docs and whitepapers.
V3 tokenomics rollout
Now… onto the new stuff.
The overall v3 tokenomics upgrade includes a large set of changes to protocol fee system, governance process, and staking mechanics. To accomplish this smoothly and to take advantage of learnings along the way, it will be rolled out in phases.
Phase I
With the launch of v3, GYSR will immediately enable new protocol fee sources and set up multi-token holder pools on each network.
Phase II
GYSR will begin a trial of limited decentralized governance over designated protocol configuration settings (more akin to temperature checks than to true DAO governance).
Phase III
GYSR plans to introduce “factory module staking” to let users build, stake on, earn fees from, and provide coverage for specific modules.
Phase IV
With a focus on community, this phase will introduce GYSR DAO, expand decentralized governance, and transition core developers to open contributors.
Phase I details
After GYSR v3 goes live, Phase I of the tokenomics upgrade will immediately roll out.
New protocol fees will be enabled for all v3 pools (not applicable to any existing v1 or v2 pools). Initial fee settings will be configured as follows:
To handle fee redistribution in GYSR v3, a new multi-rewards “waterfall” will be established for each chain. Initially, 50% of the meaningful fees collected in other tokens will be redistributed to holders staked in each respective waterfall.
Note: $GYSR fees will continue to be distributed through the existing holder pool.
What’s next?
Stay tuned for more updates as we deploy GYSR v3 to mainnet and initiate Phase I of the tokenomics upgrade! 🚀
As always, thanks to our community for all the great support, and please feel welcome to swing by the discord with any feedback, questions, or ideas (or just to chat!) 👋
Disclaimer: Forward-Looking Statements
This article may contain forward-looking statements that involve risks and uncertainties. Actual results may vary from those expressed or implied due to future events, trends, and conditions. Please be aware that these statements are just predictions and should not be considered guarantees of future outcomes. See GYSR’s disclaimer page for more details.
