Staking Period Change Update - Community Vote - 24/11/20
We previously communicated on a planned change to the liquidity staking period from 30 to 180 days, following this communication we received some very valuable feedback from our community and it became clear that the decision was more divisive than was anticipated.
As a result, we will now be holding a vote on the question of preferred liquidity staking periods.
There will be three options: 30 Day Periods / 90 Day Periods / 180 Day Periods.
The community vote on this will open on Tuesday the 24th of November 2020 at 09:00 UTC and close at 09:00 UTC on Thursday the 26th of November 2020. The vote will be accessible via our voting portal https://voting.singularitynet.io
All token holders can participate in this vote regardless of whether they currently have their tokens staked or not, no transactions will be needed and therefore no gas will be incurred as a result of voting, each vote is weighted according to the amount of AGI held by a voter, 1 AGI equates to 1 vote.
You can learn more about how to vote here: Voting Instructions
Why are we proposing the change?
As we build the SingularityNET ecosystem we need to consider how each component will affect the platform tokenomic structure to ensure stability and balance is maintained. In the case of Liquidity staking, there were many factors to consider (read here for more on this), one of those factors was the Ethereum Gas cost the foundation incurs at every staking period renewal.
At the time of the liquidity staking launch back in April 2020, the average gas prices for transactions across the Ethereum blockchain was quite low and with the exception of a short-lived spike in April 2020 the cost of gas remained very stable. However, over the past six months, the average gas cost of transactions has increased at unpredictable rates which have led to additional costs in running short 30-day staking windows. This has led to an increase in foundation costs in running liquidity staking.
Staking Participant Stats
After carefully considering how we could manage this given that we are of course not in control over the cost of gas, we analysed the behaviour of the participating staking accounts and discovered that the vast majority of those who stake do so for a period of 180 days or more.
The percentage of stakes that rolled over into the following period can be found below:
|Stake Period||Account Rollover %|
|May / June||99.16%|
|June - July||100%|
|July / Aug||86.79%|
|Aug / Sep||78.60%|
|Sept / Oct||79.65%|
Why are we making the decision to vote now?
While previously taking the decision to move the staking period from 30 to 180 days without a community vote was based upon data-driven analysis and keeping things simple by just implementing a change.
In general, the methodology as specified in section three of the SingularityNET Whitepaper is to have the community vote on “major issues” regarding the token at this stage, however, it seems that what constitutes a “major issue” is a little ambiguous and subject to interpretation.
The SingularityNET foundation and community constitute two halves of the project and are both together on a journey of discovery, learning each step of the way on how best to proceed forward which is especially important in terms of the progress toward the democratic governance aspect of the SingularityNET protocol.
This is especially exciting because as we progress forward building what has never been built before, each and every one of us can look back and be proud of what we’ve achieved together.
We’re excited to learn what our community would prefer the Liquidity staking period to be, and following the close of the vote, we expect to be able to report the results the very next day on Friday the 27th of November.
Thank you all!
We hope you will join us in our mission to democratize AI and to use its transformative powers to enact real, positive and lasting change. The best way forward is to come together and work practically towards creating a better future.
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