Dearest Hydratooooors,
With the imminent launch of staking on HydraDX - I would like to propose that we subsidise staking rewards for the first year... my rationale is as follows:
reward pot - in the initial design (Staking v1.0) this pot is filled solely by HDX trading fees. In later implementations (Staking v2.0) this will also receive trading fees from POL LP.My proposal would be to take 22,222,222 HDX from the HydraDX Treasury, and distribute it evenly throughout 365 periods to the reward pot.
I have been playing around with numbers on this sheet - if we assume that 10% of circulating supply stake their HDX, then the subsidised HDX rewards would provide a ~8.6% APR (non-inflationary).
Looking forward to this discussion!
HydraDX is launching staking soon and the proposal is to subsidize staking rewards for the first year. Stakers receive rewards every day from a reward pot which is filled by HDX trading fees. Initially, these trading fees are expected to be low due to low volumes. HydraDX Treasury is accumulating HDX through DCA from POL DAI. 22,222,222 HDX could be distributed evenly over 365 periods to the reward pot to reward early supporters.