The following applies to staking of HXRO tokens in all forms (both HXRO and esHXRO). Once staked, esHXRO receives all of the same stakeweight/governance weight and multiplier benefits for the duration of locking as standard HXRO.
Staking Overview and General Attributes
In order to create the optimal alignment between the Network and its participants, a symbiotic relationship must exist between the value the network creates and its token. In a token-based ecosystem, a strong and scalable foundation contains a mechanism whereby token holders willing to stake their tokens to the network accrue a share of network transaction value.
In Hxro, staking rewards will initially be derived from network transaction fees. 100% of network economic value (transaction fees generated by the network) will accrue back to staked tokens and to other participants within the Network who are providing critical functions, including:
Liquidity Pool Providers, and;
Volatility (THEO) and Probability (SAMM) Surface Providers
Staked tokens receive a pro-rata share of 50% of all network transaction fees. 25% is split between network treasury, insurance fund, LP rewards, service providers, and other network-critical functions. The remaining 25% of network fees are allocated to protocol-owned liquidity.
Token Locking, Stake Weight, and Governance
Network staking requires a user to lock their tokens in the Hxro staking contract. Tokens can be locked at intervals between a minimum of 7 days (1 week) and a maximum of 1095 days (156 weeks or 3 years). The Network recognizes that there is a large disparity in the minimum and maximum staking periods. While all stakers will be rewarded for their participation in the staking protocol, the Network will give greater stake weight (via a stake weight multiplier) to wallets that are willing to lock tokens in the network for a longer term. This is for two reasons:
Long-term staking carries much greater market and network value risk (since tokens are locked and cannot be unlocked) and therefore should be compensated for this risk;
The Network encourages long-term staking for wallets who are willing to align with and participate in the long-term objectives of the Network with more stake weight.
Stake Weight Multiplier
The network rewards longer-term staking commitments via a Stake Weight Multiplier.
The Hxro Network staking contract includes a stake weight multiplier. This will apply on a linear scale to all staked tokens that lock for greater than 1 year (1.x multiplier) out to the maximum staking period of 3 years (3x multiplier). An example of the effect of these multipliers can be shown below:
The simple example above shows the effect longer lock periods have on staking, governance weight and rewards. (Please note: This is not financial advice. This table is making assumptions on token price and Reward Pool values strictly for informational purposes. Values may not accurately reflect current or future value).