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SingularityDAO is thrilled to announce the launch of the revamped SDAO staking product. Providing a mechanism to earn rewards and actively participate in the SingularityDAO governance process.
The primary goal of the new staking solution is to bolster the overall health and sustainability of the SDAO tokenomics. By staking SDAO:
- Reward the Community : Users who stake their SDAO on the platform benefit from a range of advantages such as distribution of protocol fees, special allocation in SingularityDAO launchpad events, and future airdrops.
- Reduce Circulating Supply: Staking effectively decreases the quantity of tokens available in the market. This reduction can lead to a more stable and favourable environment for token holders.
- Foster Community Loyalty: Staking SDAO indicates support for long-term success and alignment to the vision of SingularityDAO, thereby increasing trust in the protocol and attracting new members.
- Governance Participation: Have a say in the future direction of SingularityDAO by participating in governance votes.
- SDAO Benefits: The only way to gain access to all the benefits and rewards that SingularityDAO offers
Staking - in its current form - has been live on the platform for many years. Currently, close to 35% of SDAO supply is locked up in staking pools, which significantly helps market stability.
Users could stake either via bonded vaults (Epoch) or unbonded vaults. Both these solutions have been embraced by the community, using them as mechanisms to access SingularityDAO launchpad allocation tiers.
However, it has become evident - over the last few years - that traditional staking solutions are outdated and biased towards high-volume stakers; and as a result, smaller but loyal community members may have missed out on the rewards offered.
In response to valued community feedback, SingularityDAO announces a new staking solution that rewards community members based not only on the amount of SDAO staked - but also on the duration for which it is staked.
This new approach ensures that all community members can receive the same rewards and benefits as large ‘whale’ stakers by locking their SDAO for a longer duration.
To achieve this equitable distribution, the SDAO staking introduces SREP (SingularityDAO Reputation Points).
SREP is a numerical score calculated as the result of the amount of SDAO staked and the duration for which it is staked.
This means a user can achieve the same SREP as someone with twice the amount of SDAO, by staking for double the duration; thus benefiting the diamond-handed members of the community.
example~SDAO holders can lock their tokens in a staking pool for a period ranging from 30 to 360 days. The longer the lock-up period, the higher the reward, as both the amount of SDAO staked and the duration of the stake contribute to the calculation of SREP. e.g.
- User 1: Locking 2,000 SDAO for 90 days will yield 180,000 SREP points.
- User 2: Locking 1,000 SDAO for 360 days will yield 360,000 SREP points.
For this example, lets assume the total rewards in the pool - amount to 100 SDAO. In the existing staking solution, rewards are distributed proportionally to the amount of SDAO staked. For instance, User 2 would receive two-thirds of the rewards in the pool. However, with the new SREP based staking, rewards are allocated based on SREP points.This means that the distribution of rewards is more equitable, reflecting both the amount of SDAO staked and the duration for which it is staked.
As the new staking solution is based upon SREP, User 2 would be able to claim more rewards than User 1. This is because SREP factors in both the amount of tokens staked and the duration. This approach ensures that community members are rewarded for their loyalty and commitment, not just the number of tokens they own.
Moving forward, SREP will be the foundation for all reward systems and will also determine SingularityDAO tiers.
This is another crucial change that emphasises the benefits of the new staking solution. These new tiers will replace the existing ones in SingularityDAO (details to be announced). Currently, community members use the tiers to get their allocation of token launches via the SingularityDAO Launchpad. With the new SREP based tiers, smaller sized token holders can receive allocations comparable to larger token holders by staking for a longer duration, addressing one of the core feedback points received from the community.
The benefits of SREP staking don't just end with launchpad allocations. Over the next 6-9 months, SingularityDAO will be launching a series of exciting new products, such as the long-awaited DynaVaults (Pv2), portfolio solution, AI analytics, and token airdrops.
Benefits of the New SREP-Based Staking Solution:
- Equitable Rewards: Smaller community members can receive the same rewards and benefits as larger stakers by locking their SDAO for a longer duration.
- Exclusive Benefits: The SREP score provides access to exclusive benefits, including launchpad allocations, premium dApp features, airdrops, AI analytics, and more
What Rewards Do Users Receive for Staking SDAO?
By staking SDAO in the new solution, users gain access to a range of benefits generated by the protocol, delivered in the form of SDAO tokens. These SDAO tokens are derived from various protocol streams, including but not limited to, DynaVaults, Launchpad & Incubation, and future buybacks of the SDAO token. These tokens are distributed proportionally to the user's SREP score relative to the total pool's SREP. For instance, if you have 1 million SREP in a pool with 100 million total SREP, you will receive 1% of the total rewards in the pool.
Moreover, users earn a numerical score called SREP, which represents their participation in the DAO and grants various benefits. SREP will also be used to determine your tier, which could benefit you with future opportunities such as launchpad allocations, premium dApp features, airdrops, and access to advanced AI analytics.
How Does the Staking Process Work?
SDAO holders can lock their tokens in a staking pool for a period ranging from 30 to 360 days. The longer the lock-up period, the higher the reward, as both the amount of SDAO staked and the duration of the stake contribute to the calculation of SREP. For example:
- Locking 1,000 SDAO for 90 days will yield 90,000 SREP points.
- Locking 1,000 SDAO for 360 days will yield 360,000 SREP points.
If you decide to withdraw before the end of the lock period, a capital slash will apply.
What is a Capital Slash?
A capital slash is a penalty for withdrawing SDAO tokens before the lock-up period ends. This penalty is calculated as follows:
- Capital Slash = 0.05% × Days Left
For instance, if a user withdraws with 300 days remaining, they pay a 15% fee.
Staking Scenarios and Calculations
Users can extend their staking period or add more tokens to increase their SREP and potentially the APR. Extending sets a new lock date, while adding tokens resets the lock period. Early withdrawal reduces the SREP score, possibly downgrading the tier level, and incurs a capital slash based on the remaining lock period. Staking contracts are available on Ethereum and Binance Smart Chain networks, with each pool potentially offering different maximum APR's.
Users can perform several actions in the staking interface to manage their SDAO tokens effectively:
- Extend: Increase the lock period of their SDAO tokens to earn more rewards.
- Deposit: Add more SDAO tokens and/or extend the lock period to increase SREP and APR.
- Withdraw: Withdraw some or all staked tokens, which may incur a capital slash if done early.
- Claim: Claim pending SDAO rewards without changing the lock period or amount staked
New User Deposit:
When a new user locks their SDAO tokens, the SREP score is calculated based on the amount of tokens and the duration of the lock period.
- Example: A user locks 1,000 SDAO for 100 days.
- Calculation: SREP = 1,000 × 100 = 100,000
Multiple Deposits:
Users can make additional deposits after the initial staking, which affects their total SREP.
- Initial Deposit: User locks 100 SDAO for 100 days.
- Second Deposit: After 10 days, the user deposits an additional 200 SDAO for 120 days.
- Calculation:
- Initial deposit SREP: 100 × 10 = 1,000
- Second deposit SREP: (100 + 200) × 120 = 300 × 120 = 36,000
- Total SREP: 36,000 + 1,000 = 37,000
Early Withdrawal:
If users withdraw their tokens before the end of the lock period, they incur a capital slash and a reduction in their SREP score.
- Scenario: User locks 1,000 SDAO for 100 days but withdraws 500 SDAO after 20 days.
- Calculation:
- SREP: (1,000 × 10) + (500 × 80) = 10,000 + 40,000 = 50,000
- Capital Slash: 500 × 0.05% × 80 = 2% × 500 = 10 SDAO
Relocking:
Users can relock their tokens after the initial lock period ends to continue earning rewards.
- Scenario: User initially locks 1,000 SDAO for 1,000 days, then relocks for another 1,000 days.
- Calculation:
- SREP = 1,000 × 1,000 + 1,000 × 1,000 = 2,000,000
Concluding Insights
The transition to the innovative SREP-based staking system demonstrates SingularityDAO's commitment to creating a more inclusive and rewarding environment for all community members. By incorporating both the amount of SDAO staked and the duration of the stake into the SREP calculation, smaller token holders can now enjoy the same benefits as larger holders, fostering a more equitable distribution of rewards and enhancing community loyalty.
This new system aligns with SingularityDAO's core values and sets the stage for a series of exciting new products and opportunities on the very-near horizon.
Stay alert for the comprehensive guide on getting started with SDAO staking.
About SingularityDAO
SingularityDAO is a decentralised portfolio management protocol designed to revolutionise crypto asset management. With its non-custodial approach, superior risk management tools, and AI-enhanced analytics, SingularityDAO allows anyone to manage digital assets effectively and safely. The platform focuses on fostering an ecosystem of digital asset managers who can provide automated, intelligent trading strategies.
As a community-centric project, SingularityDAO promotes open dialogue and transparency. It empowers its community by offering the opportunity to shape the protocol’s development through liquid democracy. Holders of SingularityDAO Governance Tokens (SDAO) can vote on key decisions, guiding the protocol’s evolution, and driving progressive decentralisation. This inclusive approach ensures a steady and well-considered transition towards complete control by the DAO.
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