Proposal on Bonding&Staking parameters

The :fleur_de_lis:GC-:classical_building:DAO must agree about the GTON’s monetization policy: Staking & Bonding parameters, limits and allocations.

I. 🪙Staking

Why do we need Staking?

  • To let holders keep and accumulate GTON overtime - accumulation as a basic use case.
  • Staking is reducing supply in circulation and thus turning GTON into deflationary currency.
  • At a later staking will be used as a way of block mining consensus for GCNet and its governance.
  • Staking is also a tool for designing flexible and scalable governance models and incentivization systems such as delegated governance staking.
  • Staking will be used as a tool set for upcoming “growth hacking” techniques like referral systems or ambassador program.
  • Staking is a sustainable revenue business model for system contributors.

How to find proper and sustainable APY?

  • First of all, the parameters aren’t hardcoded and can be redefined and established by the DAO any time based on market dynamics, product use cases and any form of research results.
  • GC is an ecosystem of products first and will eventually transform into GCNet (L1) later. So, according to the stat an APY must be between DeFi tokens staking value and L1 staking parameters:
  • Based on https://www.stakingrewards.com/ data, we have a number between CAKE (60% APY) and FTM (10%), BNB (19%), SOL (7%). This number is 25% APY.
  • 25% APY equals to 22.23% APR according to https://www.aprtoapy.com/
  • 25% APY means that GTON holder who staked 1000 GTONs will receive 250 GTONs in the end of a year.

Which allocation do we have to choose for Staking rewards?

  • According to last DAO vote (:dna:PW v1.x) we agreed to have ~25% circulating supply to the end of period (20 epochs). So, it means that CS will be 0.25·21mln = 5.25mln GTONs and max 25% of that can be issued/released in a form of staking rewards => we have 1.3 mln GTONs (~6% of TS) allocated for Staking ( max allocation. most likely it will be much less in life).

Is APY will be fixed and there will be no deletion for APY with new staking deposits coming?

  • yes, APY will be fixed until next :fleur_de_lis:GC-:classical_building:DAO vote (ideally after 20 epochs).

What is sGTON?

  • sGTON is a staked GTON - transferable token for voting/transfers purposes.

II. 🪢Bonding

*B - means bonding

What is Bonding?

  • Bonding is a GC-DAO revenue generation protocol and main source of AMM liquidity for GTON (POL - protocol owned liquidity).
  • Buyer is interacting with a smart contract and buying a locked GTON allocation.
  • The locked allocation is stakable to make B attractive - Zap-Bonding-Staking (ZBS).
  • Bonding is a key factor for PW :dna:, since new liquidity is coming to AMM and pushing PWPeg up.

What are Bonding parameters?

Bonding-Types:

    1. Short-term bonding (STB) 1 week lock (~7 days) with daily linear unlock started from +1 day after B-tx. Discount Rate is: 7%. Permissionless
    1. Mid-term bonding (BTB) 3 months lock (~90 days) with daily linear unlock started from +1 day after B-tx. Discount Rate is: 15%. Permissionless

Which allocation do we have to choose for Bonding?

  • According to last DAO vote (:dna:PW v1.x) we agreed to have ~25% circulating supply to the end of period (20 epochs). So, it means that CS will be 0.25·21mln = 5.25mln GTONs. So, 1.3 mln from that is allocated for 🪙Staking. We have 5.25 - 1.3 - 2.1 = 1.85 mln (~9% supply) GTONs for B.
  • STB allocation is 1.2 mln GTONs (~2/3 of B-Alloc) and BTB is 0.65 mln GTONs (~1/3 of B-Alloc).

Where do the numbers come from for the 🪢Bonding?

What is ZAP (ZBS)?

  • All locked via B GTONs are also automatically generating APY from staking. Zap-Bonding-Staking.

III. Voting

Voting for Pathway v1.x

1. :link:Snapshot(Ethereum)

2. :link:Snapshot(Fantom)

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Can you explain in a bit more detail, how bonding is resulting in additional AMM liquidity?
Do we need to pay with AMM LP tokens in order to get the discounted GTON? That is not so clear in the proposal.

First realization is only FTM (native token of the Fantom Opera network):

FTM → vestedGTON - discount

Example: u can buy GTON with 7 days vesting (daily unlock) with 7% discount.

Collected FTM will go to AMM and LP will be owned by DAO (POL - protocol owned liquidity).

Thanks! :fleur_de_lis:

Similar to how bonding assets are locked, I would propose the option of locking staked assets, and improving rewards for longer lock times (see my previous forum posts on locking assets).

EDIT: for reference: Boosting locked liquidity - #4 by Jim

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Staking which requires a time lock and punishes people for early unlocking would be a good play here

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