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Staking

Why There's No Staking Yet​

Staking Overview​

Staking adds value when it serves a purpose, like securing a network (e.g., ETH staking) or generating yields from financial activities. In those cases, staked tokens are actively working and offer more value than the yields earned.

However, staking yields often come from inflation, which can dilute token value.

Rizenet’s Approach​

Rizenet has chosen not to offer staking rewards because it would require diverting funds from the treasury, potentially straining resources meant to develop and grow the ecosystem. At the moment, using treasury funds to bootstrap the project is seen as more valuable than distributing them as staking rewards.

Bonding Instead of Staking​

How Bonding Works​

To reward governance stakeholders for long-term commitment without increasing token supply, Rizenet uses bonding with two key features:

  • Governance Stakes as NFT: Bonded tokens are held by NFTs, which can be traded with their associated tokens and maturity. Moreover, the NFTs visual representation evolves dynamically with the bonded amount of tokens and maturity.
  • Maturity-Adjusted Voting: The longer tokens are bonded, the more voting weight they gain, increasing linearly from 1x to 3x over three years.

As a result, matured governance stakes can be worth more than the underlying tokens themselves.

Staking in the Future​

While staking is not currently part of the roadmap, governance could vote to introduce it once the ecosystem matures and the treasury is sustainably used.

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