Final Burn & Reward to Stakers
$FIDA staking was deprecated on the 5th of May. The decision to deprecate staking stemmed from a few core points;
- Active contributors to the SNS ecosystem need to be rewarded through the launch of the liquidity incentive program
- gFIDA (Bonfida’s governance token) model for voting in our DAO elicited poor participation. Hence our DAO is in the process of being restructured
- Redistribute staking rewards to builders, contributing members and ecosystem partners with a grant program If you missed the announcement, have a read for the full context here: https://bonfida.org/blog/exciting-changes-ahead
The staking model involved staking your $FIDA holdings in order to earn interest. At the time it was a good way to denote a user’s trust in Bonfida. Rewards for your “investment” came from the registration of .sol domain names. Every time an SNS domain was registered 90% of the funds were burnt and the other 10% dropped to $FIDA stakers. The size of the rewards depended on the size and duration of your investment.
Rewards were sent out monthly and twapped. Meaning the total rewards distributed each month was capped no matter the number of domains registered in order to safeguard the continuity of rewards for the subsequent months. The 10% would have always gone to stakers, however, would’ve always rolled out later than the revenue incurred from domain name registrations.
Alas, when staking was deprecated, there were still 3,096,490 $FIDA left in reserve to distribute and burn (considering that these were capped monthly as explained above). These funds have been left untouched after staking was seized. The reserve $FIDA has always had a clear goal though, 10% to stakers and 90% to be burned.
For this reason, we moved forward with the procedures set. Today 90% of the remaining reserve were burned and the remaining 10% dropped to all stakers in their given proportions.
The burn transaction: can be found here
