【ZIP】Expanded staking mechanism

Strategy
1

:point_right: EXPANDED STAKING MECHANISM :point_left:
a. General:

The staking mechanism is the commitment of investors to be loyal to the project. The longer the time, the more they prove their loyalty and they deserve to be rewarded and recognized.

This expansion mechanism has an additional time element, contributing to classifying investors who really want to go far with the project, based on the amount of sZKF received from the staking lockup period. And from this number, they also receive a proper profit share and real voting power.

As the governance token of zkFair, $ZKF will bring numerous utilities, including:

  • Staking $ZKF into the staking contract will get $sZKF and Voting Power.

  • $sZKF is an ERC20 token, which can be deposited into pool and get sharing gas fees.

  • Investors can use sZKF to vote for new proposals, as well as vote for projects sponsored by zkfair…

b. Conversion rate:

Staking $ZKF will get sZKF and Voting Power. For the conversion rates, please refer to the formula below:

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The initial staking rate would be 1, and it would double every year afterwards.

LockPeriod represents the lock-up period (a year as a unit). Users can decide the lockup period on their own: from 1 day to up to 4 years.

Based on the calculation formula above, when the stakingRate remains 1, the relationship between different lock-up period and conversion rate would be as below:

4 years lock-up period will get the complete conversion rate；

3 years lock-up period will get 50% conversion rate；

2 years lock-up period will get 25% conversion rate；

1 year lock-up period will get 12.5% conversion rate；

StakingRate will double every year. Please refer to the chart below for conversion rates with different stakingRates.


c. Restake

StakingRate will be increasing as the time goes on, which means the conversion rate of later staking users will be higher than the earlier staking users under the same lock-up period condition.

In staking mechanism, if the $ZKF stake amount and the staking period conclude at the same time, stakers will receive an equal amount of $sZKF, regardless of when the staking commenced. For instance, a staker who locks 1000 $ZKF for a four-year period starting in January 2023 will receive the same quantity of $sZKF as another staker who locks 1000 $ZKF for a three-year term starting in January 2024, given that both staking periods conclude simultaneously.

To help staked users continuously get more $sZKF and greater voting power, the restake function shows up. Restake function allows stakers to extend the lock-up period and unexpired position for highest conversion rate.

d. License:

This is the staking mechanism that the Dyson Finance project is using. We can create a smart contract ourselves or contact them to cooperate. Cooperation will be much faster and more convenient, because they are also the top growing project on Polygon zkEVM

29 个赞
2

The article adeptly outlines zkFair’s staking mechanism. Your detailed explanation of the $ZKF token and its associated perks, such as acquiring $sZKF and voting power, is both thorough and easily understood. The description of the Restake feature adds a compelling element, increasing the attractiveness of the staking mechanism by providing users with flexibility to extend lock-up periods and enhance profitability.

A notable feature is the emphasis on fairness. The equal distribution of $sZKF to users who stake the same amount of $ZKF for identical durations and interest rates fosters transparency and equity. This creates an environment conducive to active community engagement. Btw, congrats :slight_smile:

13 个赞
3

Thank you. Staking is interesting and exciting, I think it is an art that helps balance the ecosystem. Adequate rewards for those who place their trust in the project. :wink: :wink:

7 个赞
4

In the above article, the scaling staking mechanism refers to the use of zkFair and the $ZKF token to drive investor commitment to a project. This mechanism not only demonstrates loyalty through staking time but also creates rewarding opportunities for profits and voting rights.

Applying a conversion rate based on staking time and number of sZKF tokens received helps to classify more committed investors and create incentives for long-term participation. This not only creates fairness but also promotes continued participation and support for the project.

A notable point is the ability to reset staking time, allowing users to maintain a high level of incentives in conversion rates. This promotes flexibility and the ability to maximize the benefits of their engagement.

By applying a clear formula and providing specific incentives, this mechanism can increase the motivation of users to participate in the project and create a more attractive and fair investment environment.

Dear: Twitter: @lenszksync

8 个赞
5

Thank you for your sincere conclusions about this expanded staking mechanism. It’s amazing how close it is to the ideas I mentioned.

5 个赞
6

The idea is that the longer you stake, the more rewards you will receive?

6 个赞
7

I also see that ZKF stakes according to the ratio amount*Time. Is expanding the staking mechanism necessary? :thinking:

6 个赞
8

Is the concept that the duration of your staking directly correlates with the amount of rewards you earn accurate? :face_with_monocle:

5 个赞
9

I appreciate your kindness. The concept of staking, with its intricate dynamics, holds a special fascination for me. It transcends a mere financial transaction, resembling an art form that intricately contributes to the delicate balance within the ecosystem. The profound role it plays in fostering sustainability and decentralization aligns with my values. Moreover, the prospect of substantial rewards serves as a testament to the belief and commitment invested by individuals in the underlying project, adding an extra layer of significance to this intricate financial practice. :grinning:

5 个赞
10

I also find that staking is also necessary, and it is best to decentralize the commitment time or staking period. :thinking:

But does the community see this? :thinking:

6 个赞
11

The article provides a clear overview of zkFair’s staking mechanism and governance token $ZKF. It details loyalty assessment through staking duration and incentives for investors. The conversion rate formula and accompanying chart elucidate the calculation based on time and staking rate. However, incorporating a specific example or real-world application of $ZKF would enhance the article’s vibrancy.

7 个赞
12

I’m drawn to the world of staking because it feels like an art form, contributing to the equilibrium of the ecosystem and offering just rewards to those who show confidence in the project. :heart_eyes: :heart_eyes:

5 个赞
13

Expressing deep gratitude, I find immense allure in staking, viewing it as a nuanced art that plays a pivotal role in maintaining equilibrium within the ecosystem. The promise of substantial rewards further adds to its appeal, creating an enticing prospect for those who place their belief and trust in the project.:smiling_face_with_three_hearts:

5 个赞
14

Thank you so much. Staking holds a special allure for me, it’s akin to an art that plays a vital role in balancing the ecosystem. Substantial rewards for those who believe in the project.

5 个赞
15

The staking model not only amplifies the influence of institutional participants in shaping the ecosystem but also drives demand for the ZKF token. Your proposal to “Expand the Staking Model” has removed barriers and opened the door for large institutional players to play a key role in shaping the future of ZKFair. This watershed moment not only benefits institutions looking to enter DeFi, but also benefits the entire ZKFair community.
In addition, it is also extremely important to establish essential principles to ensure that proposals are always in the best interest of the ZKFair ecosystem. In my opinion, to create official governance proposals, users must holds a minimum amount of ZKF 50,000,000, enhancing both utility and demand. This requirement not only drives demand but also fosters a stronger and more cohesive ecosystem. Additionally, to pass the governance vote, a quorum of 250,000,000 ZKF must be achieved, which further solidifies the utility and influence of the token.
Thanks for your analysis!

7 个赞
16

Thank you greatly. Staking, with its artistic essence, holds a crucial role in ecosystem equilibrium, promising significant rewards for those who have faith in the project.

4 个赞
17

That’s right. And increase the commitment period to 4 years for even more variation between loyalty pledges.

5 个赞
18

Exactly. And it is executed based on smart contracts. The longer the commitment period proves the loyalty of the members :wink: :wink:

5 个赞
19

Extending heartfelt appreciation. The practice of staking, enriched by its intricate artistic elements, occupies a pivotal position in the delicate equilibrium of the ecosystem. It not only serves as a mechanism for participation but also holds the promise of substantial rewards for those astute individuals who demonstrate unwavering confidence in the underlying project, underscoring the profound interplay between creativity and financial incentives within this dynamic landscape. :heart:

6 个赞
20

It’s really not that complicated. It is like a commitment and a measure of trust and loyalty to the project. thereby achieving worthy rewards

5 个赞