Community Update - Staking Model
We want to share an update on our staking model, which has been developed in cooperation with some of our partners. As of yet, the model has been finalised and we’re delighted to release a high-level summary.
We want to share an update on our staking model, which has been developed in cooperation with some of our partners. As of yet, the model has been finalised and we’re delighted to release a high-level summary. As for when the actual staking solution will be made available; we are waiting for the necessary audits and security checks. Given the recent security breaches in the space, we want to make sure that the necessary steps are followed in order to increase the security of our protocols. However, reputable audit firms within the space are currently experiencing a sharp increase in demand, resulting in a delay.
Circling back to our solution, we will be launching a variety of staking models with different lock-up periods. At first, we will introduce a regular staking model where token holders who stake IAG tokens in the corresponding pool will earn additional IAG tokens over time. Secondly, we will be utilizing our treasury funds to the fullest extent and we will let staking participants benefit from our careful treasury management as well. We facilitate such participation by introducing staking solutions that will offer users the possibility to earn ADA and USDC on top of IAG tokens depending on the solution they choose. In short, our system will use the power of our (treasury) partnership base and the APY we earn on our own stakes will be partially redistributed to our participating token holders. To illustrate this solution, we can boil it down as follows:
IAG tokens will be made available as a traditional reward for locking up your tokens for a certain period of time. In addition, we will stake our own treasury funds in secure and conservative ADA and USDC pools, which will generate a steady APY. Participants who decide to lock up their IAG tokens in certain contracts for a longer period, will be granted a portion of the generated yield on our treasury stakes. ICO holders (investors from 2018) will automatically gain the highest APY available.
In addition, we will grant participants the option to stake alongside us in ADA and USDC pools, generating a higher APY than market standards. These higher yields will be redistributed proportionally to the corresponding participants.
For now, we will focus on granting ADA and USDC as additional rewards, but we will look for additional solutions that will also make BTC and ETH rewards available to our token holders. However, as we are pushing hard to facilitate our launch on the Cardano ecosystem, our focus will foremost remain on ADA as well as stablecoin rewards.
Since the staking models are finalized, we will move forward with the implementation, but, as stated before, we want to have the right security audits in place. Once the audits are completed (in the next few weeks), we will launch our solutions in order to enhance the utility of the IAG token.
Remember, to spread the word that Iagon is making the cloud a safer, greener (and cheaper) place to store valuable data.