Dear JUP Team,
I am writing to propose the implementation of two distinct staking models for the JUP ecosystem. These models aim to increase user engagement, incentivize participation in the JUP DAO, and provide flexible options for token holders, catering to both long-term and short-term stakeholders. Below, I outline the proposed staking structures, their benefits, and their potential impact on the JUP ecosystem.
Proposal Overview
The proposed staking models are designed to balance high-yield opportunities with flexibility, encouraging broader participation in the JUP DAO while rewarding committed stakeholders. The two models are:
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Active Staking Rewards Program
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JUP Flexible Staking Program (JUP.Stake)
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Active Staking Rewards Program
Description:
The Active Staking Rewards Program is tailored for committed JUP token holders who actively participate in the JUP DAO. Participants lock their JUP tokens and engage in DAO governance by voting on proposals.
Key Features:
Annual Percentage Yield (APY): 120% in JUP tokens.
Locking Period: Tokens are locked for active staking, with a 30-day unstaking period.
Additional Rewards: Participants receive exclusive rewards from partner protocols integrated with the JUP ecosystem, such as Zeus and Sanctum. These rewards enhance the value of active participation in the DAO.
DAO Participation: Stakers must vote on DAO proposals to qualify for the full APY and additional rewards.
Benefits:
Encourages long-term commitment to the JUP ecosystem.
Strengthens DAO governance by incentivizing active participation.
Provides high yields and exclusive rewards, attracting dedicated stakeholders.
- JUP Flexible Staking Program (JUP.Stake)
Description:
The JUP Flexible Staking Program (JUP.Stake) is designed for users seeking flexibility and moderate returns without the requirement of active DAO participation. This model offers a lower APY but allows quicker access to staked tokens.
Key Features:
Annual Percentage Yield (APY): 60–80% in JUP tokens.
Unstaking Period: Tokens can be unstaked within 7 days.
Optional Validator Delegation: Users may delegate voting rights to validators who vote on their behalf in the DAO, maintaining the 7-day unstaking period.
No Additional Rewards: Unlike the Active Staking Program, JUP.Stake participants do not receive rewards from partner protocols like Zeus or Sanctum.
Benefits:
Appeals to users who prioritize liquidity and flexibility.
Broadens participation in the JUP ecosystem by lowering barriers to entry.
Supports DAO governance indirectly through validator delegation, if chosen.
Rationale and Impact
The dual staking models cater to diverse user preferences, fostering inclusivity and engagement within the JUP ecosystem. The Active Staking Rewards Program incentivizes long-term commitment and active governance, strengthening the DAO’s decision-making process. Meanwhile, the JUP Flexible Staking Program attracts a wider audience, including users who may be hesitant to lock tokens for extended periods or participate directly in governance.
Together, these models can:
Increase JUP token demand and retention through attractive yields.
Enhance the JUP DAO’s decentralization and activity.
Position JUP as a competitive player in the DeFi staking landscape.
Implementation Considerations
To ensure the success of these staking models, I recommend the following:
Smart Contract Audits: Conduct thorough audits of the staking contracts to ensure security and trust.
Clear Communication: Provide detailed guides and FAQs to educate users on both staking programs.
Partnership Integration: Formalize agreements with partner protocols (e.g., Zeus, Sanctum) to secure additional rewards for the Active Staking Program.
Validator Oversight: Establish criteria for validators in the JUP.Stake program to ensure reliable DAO participation on behalf of delegators.
Conclusion
The proposed Active Staking Rewards Program and JUP Flexible Staking Program offer a balanced approach to incentivizing participation, rewarding commitment, and broadening the JUP ecosystem’s appeal. I believe these models can significantly enhance the utility of JUP tokens and strengthen the DAO’s governance framework.
I would welcome the opportunity to discuss this proposal further and provide additional insights or data to support its implementation. Please feel free to contact me at [Your Contact Information] to schedule a discussion or request clarification.
Thank you for considering this proposal. I look forward to your feedback and the potential to contribute to the JUP ecosystem’s growth.