Snowball’s 5th governance proposal, which passed on May 2, cleared the way for our developers to work on a new feature: SNOB staking.
With SNOB staking or xSNOB, governance will become more robust and token holders will unlock new features like earning protocol revenues and earning additional SNOB rewards through boosting.
To kick off SNOB staking, we are releasing documentation today so you can prepare and understand the changes we are making before launch. Starting Wednesday, May 19, SNOB staking will go live.
Full xSNOB documentation: https://snowballs.gitbook.io/snowball-docs/understanding-snowball/staked-snob-xsnob
What is xSNOB?
xSNOB is the staked version of SNOB. It is acquired by staking your SNOB for a predetermined amount of time. Depending on how long you stake your SNOB you will receive different amounts of xSNOB.
xSNOB has three main applications:
- Voting on community proposals and weekly SNOB reward allocations.
- Boosting SNOB rewards by up to 2.5x.
- Earning a share of Snowball’s revenue, distributed weekly, in market-bought SNOB.
The amount of xSNOB you own is determined by how much SNOB you stake and the time left until your SNOB is unstaked. SNOB must be staked for a predetermined amount of time. During this time your SNOB cannot be removed or transferred, and you cannot decrease the amount of time it is staked for.
SNOB can be staked for a minimum of 1 week and a maximum of 2 years. You will receive more xSNOB the longer your SNOB is staked.
Your xSNOB balance will decrease linearly over time. Towards the end of your staking period, your xSNOB balance will approach 0. On expiry of your staking period, your staked SNOB will be released.
The only way to mitigate this decay is to extend your staking period or increase your stake with more SNOB.
Transition to New SNOB Reward Allocations
During the first week that xSNOB is live, the current SNOB reward allocations will remain. During this period, you will be able to stake SNOB for xSNOB and then vote for the new reward allocations. The new allocations will go live during the second week that xSNOB is live. After this time, new allocations will be determined weekly through xSNOB voting.
Contributors to Snowball have made reasonable efforts at ensuring the integrity of the protocol including tests. Snowball is monetarily valueless and has 0 entitled financial value. Anyone who chooses to engage with these contracts, including the Snowball token contract, are doing so at their own risk. You should perform your own due diligence.