Incentivize HNY Holders

🌿 Proposals
#1

Launch HNY Staking

Proposal Information

Proposal description:
This proposal is meant to kickstart HNY staking. There will be 2 staking tiers.
A) Locked staking with 70% APY capped at 150 HNY, min lockup period of 365 days.
B) Open staking with 40% APY capped at 80 HNY. No lockup required, rewards are accrued daily but can only be withdrawn after every 30 days, withdrawal before the 30 days maturity will result in loss of all accrued yield. unclaimed yield are compounded, stakes start to yield rewards 24 hrs from when staked.

Proposal Rationale
As it currently stands, there is little incentive from holding HNY, most people find it easier or are tempted to just sell off their earned HNY than holding it. Honey’s only real purpose is 1Hive governance. In as much as this is a powerful enough reason to hold the token of a unique DAO such as 1Hive, sadly it only beckons to a small niche of people that believe in 1Hive and wants to actively be a part of building and shaping it. We need to create as many use cases as possible for the HNY token so it can continue to increase in value. HNY staking is just one way to create a new use case for the token.
It creates a way for other people that are not necessarily interested in governance to also contribute and add some value to the ecosystem while we reward them for it.
The farming experiment has demonstrated that there are people willing to invest in 1Hive purely for profits. We have to capture these class of investors through something that will benefit them and at the same time the Hive. I believe staking will be useful. Some of the benefits are

  1. Rewards and encourage people who support the 1Hive ecosystem by holding HNY.
  2. It automatically creates a new utility use case for HNY.
  3. It will help the demand pressure for HNY which translates to price appreciation as people lock in their HNY or buy HNY to stake.
  4. Less sell pressure as HNY is locked up and holders are incentivized for hodling.
  5. High probability of new stakers joining the community and becoming active bees.
  6. Add yours*

Expected duration or delivery date (if applicable):
How long do you think it will take to deliver on your proposalN/A

Team Information (For Funding Proposals)

Names, usernames, and/or relevant social links for team members (Twitter, Github, 1Hive Forum, etc.): N/A

Skills and previous experience in related or similar work:
N/A

Funding Information (For Funding Proposals)

Amount of HNY requested: N/A

Ethereum address where funds shall be transferred: N/A

More detailed description of how funds will be handled and used: N/A

2 Likes
Marketing Thoughts
#2

This proposal is open to discussion and further input from the community. Long live the hive!

1 Like
#3

Give time to work out the details before putting up on honeypot if you don’t mind:

A few thoughts:
1.) I would support if they receive a token they can still vote with
2.) I would like to see a penalty for early withdrawal. Not just loss of yield but a tax (say 10% of initial investment For the yearly and say 20% for the monthly or something to that affect)
3.) how was 70%apy and 40% APY selected? On face value they seem okay but the monthly seems a bit high relative to the yearly. Maybe 20-30% for the monthly. I’d like to hear thoughts on the potential impact to honey price with these APY.
4) I really really really like the caps. Again are they the right quantities? I am okay with both of these.
5) Is there something more we can add to this staking? Can the staking be used to help liquidity somehow instead of sitting in an idle state?

2 Likes
#4

Thanks. Every figure put here is absolutely changeable. I’ve thought about the issue of voting still applicable to staked tokens, honestly i don’t how possible it’ll be. But i’m still cool with separate hny for voting thou if voting with staked HNY won’t be possible. As for penalty for early withdrawals, we want as many people as possible to stake their HNY not scare them away lolz, but i understand where you are coming from i just think its a bit harsh but thats just me.
40% APY translates to 3.3% monthly. but yeah its a lil high, can be still lowered.
I don’t know how we can use staking to help liquidity. possible but that will mean going down the defi rabbit hole.

1 Like
#5

We can not offer fixed yields like this proposes, since the budget for any rewards would come from the common pool. They would be a fixed amount of honey, and as the amount of people staking or the price of honey changes the apys would fluctuate.

1 Like
#6

Also rather than encourage people strictly with yields, perhaps we should give people an NFT that can be displayed on their profile for locking up specific amounts for specific times, vesting that honey back to them.

Essentially committing to long term, and giving the user a badge which could become a historic artifact of the project over time, and serve as a signal of social capital and credibility when interacting with others in the community.

We can offer some sort of reward in honey as well, but should consider other vectors besides just honey because it may be able to achieve similar goals in a more capital efficient manner. Keeping in mind that locking up honey doesn’t in and of itself create any real lasting value, that’s not to say its not worthwhile (just that its more use in terms of distribution and incentive alignment, then actually creating valuable outputs directly).

7 Likes
#7

I would stake all of my Honey for the year, just to keep me from spending it, IF I could still vote with it.

My tiny tiny drip of Honey.
Which I love.

I’m a Honey Bunny.

*Otherwise I would lock 1 (one/wun) Honey and maybe add, depending.

#8

Overall cap or cap per person?

Sorry… I’m a money abolitionist, so this defi stuff is hard.

#9

Great idea for earning passive income, but not keen on capping the number of HNY.

In my opinion, Mantradao have the good working example, the kept their APY for 88.88% for a limited of time I believe. https://app.mantradao.com/staking

#10

I completely agree, we should not encourage people “strictly” with yields. Its obvious a combination of different motivational factors is undoubtedly a more superior way.
The NFT idea is wonderful and i say we implement it asap, although i think it will only appeal to people already active and contributing in the ecosystem.
As long as the NFT has little or no value, people on the outside will hardly want to commit resources to get it. On the long term thou, it can actually become huge and appeal to everyone but its success depends on the success of 1Hive.

#11

Since our system of funding is unique, we can as well model a staking program that is unique to the Hive.
APY can be purely in terms of HNY and not HNY value. We can also cap the overall total amount of HNY that can be staked at any given time, I mean the amount of HNY that the staking program can accommodate as a whole. This will enable us to more accurately determine yields and therefore have a proper figure to request from the pot. Plus this will ensure that a certain reasonable amount of HNY in the ecosystem is always locked.

Its not as if locking up HNY is an absolute or sure solution to creating value. Creating value and making HNY valuable is a combination of many factors, locking up HNY is just a tiny part of it since HNY locked means at any particular time a certain amount of HNY are not for sale which no doubt relieves some of the sell pressure on HNY and it sure helps.

Staking spots can be on a first come first serve basis or priority given to larger stakers. When spots gets filled up people can actually still stake to book the next open spot and when a spot opens(because someone unstaked some or all of their stake) the accurate amount of HNY required to fill up the spot will be automatically deducted from the staker next in line and staked(kinda like an order book in CEXes).
Amount of HNY open for staking in the staking program can be displayed for all to see and keeps adjusting as people stake and unstake so anyone interested can quickly stake and claim a spot.

#12

I think this will make staking competitive and has the potential of ensuring that a certain amount of HNY is always locked since people will compete to stake. While discouraging stakers to withdraw since getting a spot is competitive.
We can tweak this however we like, for example extending time before reward can be claimed, removing the ability to withdraw once staked until a set time, increasing or decreasing yield based on demand until we maintain equilibrum, etc.

#13

The reason for the cap is to ensure a fair HNY distribution. As it stands we are currently trying to solve HNY distribution dilemma. without the cap we will just be adding to the problem because all we’ll be doing will be just making whales get bigger.

#14

Definitely a step in the right direction, still the value of the token will plummet, those investors will stake the 30 day period than dump and move on to a more advantageous project! Yet, the price of your “utility token” will rise momentarily only to then continue downtrending :slight_smile: What is that saying, you can’t turn a buick into benz, no matter how hard you try it’s still a buick! However, making good decisions with a buick can cause much good!!! You guys should consider adopting an alternative protocol for the project moving forward, contenders are going to enter the space far more competitive and with broad eyes, you seem to be holding on to tight to what you should be letting go of liberally!!

#15

If we communicate… The community is always working on ways to incentivize members for their contribution. It’s possible that 1st gen 1Hive NFTs will have benefits the community has yet to develop.

I know some ppls opinion on hex but hex has some interesting staking ideas we could use

#16

The equivalent of the african killer bee is coming to the space, specifically to contend with the hive. You will most likely be devoured!

#17

I have no doubt the NFTs will eventually become valuable and reward the holders, i guess you think same too, why? because both of us are already in the ecosystem and understand what we are doing here, but not so much for so many other people especially potential investors outside 1Hive.

The reason i am campaigning for staking to be implemented is because when done right it can attract outsiders while further encouraging people like me and you who are already invested.

It would be nice to share your opinion on the Hex staking ideas. :grinning:

#18

There is no 30 day staking period. All staking period proposed will last for a year. the 30 days is what is being proposed for stakes to be able to be withdrawn so you can get the accumulated yield so far which is 1/12 of the total amount.

#19

What does it matter, Uniswap with over 200 million tokens in circulation - a 1 billion float, another “utility token,” will mostly likely exceed the value in one year of a single HNY with only approx. 25K in circulation. Why, “popularity” - “marketing” - “buzz effect”(creating excitement in the space). Popularity goes a long way, when I received my free UNI, I added liquidity as an action of gratitude!!! And so did a lot of others, what is your point basically - your debating staking when you should be debating an “airdrop,” trying to increase the value of a token, will most effectively occur through “branding,” at this time Popularity=Value, benchmarking the successful actions of flourishing companies is a good idea

1 Like
#20

Ok. Thanks for your input.

1 Like