Temporarily funding staking rewards from Treasury reserves
Last year, we committed 30% of our PRIME allocation to funding PDT staking rewards over 12 monthly epochs (read more here), with the expectation that ongoing PRIME revenues would continue to fund the rewards.
The 12th epoch ends this month, and though we’ve yet to earn ongoing revenues sufficient to continue funding our staking rewards, we’re confident these revenues will begin flowing shortly (e.g. gameplay revenues enabled by Echelon Bonds next month, sink emissions enabled by Parallel’s Open Beta, changes to Replication, and newly teased sinks).
As a measure of our confidence, the Treasury Council has agreed to fund 11,594 PRIME to the staking rewards pool over the next 3 epochs (this is over 100% of the monthly revenues we receive from providing liquidity). At today’s rates (March 8, 2024), that would provide an APR range (in USD terms) equivalent to 6.24%-24.4% (depending on each individual’s multiplier).
As our revenue sources activate and begin to fund staking rewards, over the short term, the Council will regularly assess reward funding levels, seeking to continue providing attractive rewards to PDT stakers while balancing treasury health.
Over the long term, the Council seeks to define appropriate configurations for automatically funding staking rewards from all sources of DAO revenue.
Proposed improvements to the staking model
We’ve just published a governance proposal that outlines suggested changes to better position our staking model for the future. The proposal intends to enhance governance opportunities, give stakers the opportunity to direct the liquidity of our playable cards, incentivize long-term commitment and participation within the ecosystem, while giving new ecosystem participants equal opportunities to participate and earn rewards.
Share your thoughts on the proposal here!
