There is no doubt that P-NFTs are the most valuable asset in the Iskra ecosystem. They allow holders to receive staking rewards in the form of ISK, as well as earn contribution points or CP that significantly help them rank higher in the Iskra Community Tier System.
As a result of our latest governance voting and as we work to extend the value of P-NFTs, we’ve come up with the concept of “Settler NFT” — an NFT that represents the unstaked version of a P-NFT and tradable on secondary markets.
In this article, we’ll break down what you need to know about Settler NFTs and what happens when you unstake P-NFTs.
The Importance of Staking P-NFTs
A P-NFT is a utility NFT and owning one means you get access to a laundry list of exclusive perks, such as being entitled to receive a significant amount CP from it. But why stop there when you can use it to earn even more rewards from it on the Iskra platform?
Cue in staking — a popular method in the blockchain industry that allows users to earn rewards by locking up their assets to contribute to the operations and security of a platform.
In Iskra’s case, staking a P-NFT means you get staking rewards from it in the form of ISK tokens, and after Iskra’s latest governance voting , ISK rewards from staking have switched to upward distribution. This ensures everyone who stakes their P-NFTs is rewarded accordingly based on the length of time they staked.
In short, the longer you stake, the better.
Since P-NFTs grant an overwhelming number of ISK token rewards, releasing them in bulk to the market will pose an adverse effect to the Iskra ecosystem.
Therefore, unstaking is only made available after a specific period of time and ISK tokens distributed as P-NFT rewards are locked and released in stages to the market.
What Happens When You Unstake Your P-NFT?
Note: A P-NFT can only be unstaked once (you can’t stake it again once you unstaked it) and the process is irreversible.
Once enough time has passed (i.e. when the 5000th P-NFT after you bought your P-NFT is sold. Learn more.), you can continue to stake your P-NFT to continue earning ISK rewards, or you can unstake it and get a “ Settler NFT “ aka S-NFT in return.
Ideally, Pioneers are highly encouraged to continue staking their P-NFTs to get the most value out of it as the process of unstaking can only be done once.
However, if for some reason that a Pioneer decides to unstake their staked P-NFT, the unstaked P-NFT will be burned and they will receive a Settler NFT.
- If you stake your S-NFT, you will continue to get the corresponding CP rewards as before, but it will not earn ISK staking rewards.
- If you don’t stake or unstake your S-NFT, you will be able to sell it in secondary markets and transfer it to someone else.
In a Nutshell
As a P-NFT holder, staking your P-NFT asset means you will continuously earn ISK rewards, in addition to contribution points.
While it is highly recommended that you stake and continue to stake your P-NFT for long-term to get the most out of it, we also understand that there will be instances when a holder would opt to unstake it.
Unstaking a P-NFT can only be done once and the process is irreversible, hence please think thoroughly before unstaking your P-NFT.
Once you unstake your P-NFT, a Settler NFT will take the place of your unstaked P-NFT asset, which will be burned. While you will stop earning ISK staking rewards, you will continue to earn contribution points from your Settler NFT if you stake it.
Should you decide to sell your Settler NFT on secondary markets, all the perks that come with the Settler NFT (i.e. earning CP if you stake it) will accrue to the buyer.
About Iskra
Iskra is a single-destination Web3 game platform for developers and players that rewards them for their contribution and participation through a unique community system on the blockchain. This allows stakeholders to take a major part in building the platform for future growth.
Current services include a wallet, DEX, marketplace, NFT Mission Card (daily reward), governance staking and voting, and soon-to-launch Web3 casual and hyper-casual games.
Backed by some of the biggest technology and video game companies in South Korea, Iskra ranks in the top categories for gaming in DappRadar for unique active wallets per day and engagement.
Explore the future of play!
Originally published at https://news.iskra.world on October 25, 2023.
