Vote on MODA staking rewards
MODA Staking is ready to launch according to our 2023 roadmap. Planned to start on August 8, MODA holders and participants will have the opportunity to vote and participate in the staking and liquidity mining program.
This initiative aims to reward our community members and incentivise liquidity provision on the Uniswap v2 platform, as determined by the DAO vote at the end of June 2023.
Aligned with our 2023 roadmap, the MODA core team is actively working on a significant product release. The staking program serves as a means to bridge the gap between MODA’s initial launch in 2022 and the anticipated network revenue from the upcoming product in early 2024.
IMPORTANT: Staking, locking tokens and providing liquidity all come with their own risks and require a level of research, experience and understanding before participation. Please understand these risks, as well as your own tax obligations before participating in the program. MODA DAO does not share any risk or provide any support on these matters.
Here’s a brief overview of the proposed MODA Staking program:
The MODA Staking contracts have been tested on Sepolia testnet and the test UI is live now at https://modasepolia-frontend.vercel.app/staking. If given a positive DAO vote, rewards will commence on August 8th 2023. Note this test application requires Sepolia MODA and ETH tokens which are not being made available for the community, it is only being shared here for UI review purposes.
The MODA/ETH pool will be deployed on Uniswap v2, featuring an initial liquidity of $300k, provided by DAO treasury and market makers. An optional proposal may be passed to lock some of this liquidity if required by the community. The staking contracts and reward mechanisms have been modelled on other successful staking programs, providing rewards to both core $MODA holder and participants who choose to provide liquidity on Uniswap v2 by staking SLP tokens.
MODA token and MODA staking contracts have been audited by Certik and PeckShield respectively.
Phase 1 of the rewards could launch by August 8th, 2023 and based on a vote will span over 6 or 12 months, with a distribution of 250,000, 500,000 or 1 million MODA tokens. The rewards will favour LP stakers with a 60/40 split to encourage greater liquidity depth and distribution by the community. The rewards will remain constant throughout the period, resulting in more significant rewards for early participants.
As new participants join, the share of rewards may decrease, although any potential price increase due to the locked supply could help offset this effect.
Participants have the option to lock their initial staked amount, which will increase their rewards weighting. Unlocked tokens can be unstaked at any time. All rewards must be claimed periodically, which triggers a mandatory 150-day vesting period for the claimed rewards.
The DAO may vote to extend the staking program months based on factors such as the progress of the new product, market conditions, and other relevant events. Some variables may be adjusted for Phase 2 of the program if required.
MODA Core Staking
$MODA core staking will be a straightforward process. Holders of MODA tokens can stake or lock their tokens in the staking pool and receive rewards accordingly. As mentioned earlier, holders have the option to select a lock period to increase their rewards weighting as desired up to 2x. Rewards must be periodically claimed to trigger the mandatory 150-day vesting period. The Annual Percentage Yield (APY) displayed on the website indicates the amount of tokens a holder would receive on an annual basis, assuming all conditions remain consistent with the previous 24 hours.
Please refer to this article for more information on APYs.
MODA/ETH LP Staking
DAO participants interested in providing liquidity to support the MODA project can be rewarded for their contributions through the distribution of MODA tokens. To participate in this LP staking, holders must:
- Acquire MODA tokens and ETH tokens of equal value
- Contribute to the MODA/ETH liquidity pool on Uniswap v2 and retain the SLP tokens received
- Stake the LP tokens at moda.audio/staking and select a lockup period
- Periodically claim the rewards
Sustainability
MODA’s token model prioritizes sustainability, with a percentage of all network revenue allocated to the MODA Sustainability Pool. The funds in this pool can be utilized to repurchase MODA tokens from the market and redistribute them through grants, token burning, or enhancing the DAO treasury. Given the current low levels of Music NFT sales and revenue, the staking program serves as a solution to bridge the gap until the launch of the new product and rebrand, both mentioned in the 2023 Roadmap Update. More news to come on both of these soon.
Thank you for your continued support and participation in the MODA ecosystem.
