| id | Title | Status | Author | Description | Discussions to | Created |
|---|---|---|---|---|---|---|
| TIP-214 | Deprecate Passive Rewards for Thales Staking | Draft | stake_stake | Deprecate Passive Rewards for Thales Staking | https://discord.gg/thales | 2024-05-20 |
Redirect passive staking rewards towards Gamified Staking to foster active participation and enhance protocol engagement.
This TIP proposes to shift allocation of Thales staking rewards by eliminating the distribution of base Thales rewards and protocol fees to passive stakers. Instead, these rewards will be added to the pool for Gamified Staking Rewards. The aim is to focus incentives towards impacting core protocol metrics, such as trading volume, liquidity provision in Thales AMM pools, and Thales vaults deposits.
Under the current system, Thales stakers receive rewards from three main sources: a base reward, protocol fees, and Gamified Staking Rewards. However, the distribution to passive holders does not optimially promote active engagement and support for the protocol's key performance metrics. By reallocating the base rewards and protocol fees exclusively to Gamified Staking, we can enhance the incentives for stakers to actively contribute to the protocol's growth. This shift is designed to encourage more strategic and impactful participation within the Thales ecosystem, algining rewards more closely with value-add activities.
The following changes should be announced at the start of the staking period, contingent upon readiness for migration, with implementation slated for the beginning of the subsequent period.
Elimination of base Thales rewards and protocol fees to passive stakers.
Redirect base Thales rewards and protocol fees towards the existing Gamified Staking pool. Although the total rewards pool for Gamified Staking will expand, the distribution criteria based on active contributions such as trading volume, liquidity provision, and Thales vault deposits wil remain unchanged.
To be discussed with engineers upon approval
Copyright and related rights waived via CC0.