It’s staking time!
During the lasts weeks, we’ve been delivering each one of the distributions methods mentioned in the original THALES tokenomics post.
With the airdrop, retro pro-rata distribution, liquidity provider incentives (continuing for 16 more weeks), and ongoing distribution for SNX stakers all already taking place, we’ve been able to focus on one of the last missing pieces: THALES token single-sided staking.
The TIP-7, which defined the new THALES staking mechanism, was recently voted and approved by Thales Council.
But… what does this mean for THALES holders? Let’s dive in.
Staking mechanism
Thales staking contract is a contract in which users lock their THALES to receive voting power on the protocol. THALES staked balances will be used to determine voting power for governance votes, like voting on the next Thales Council as representatives when the time is due.
Remember: THALES is a governance token
To incentivize staking, the initial plan was to distribute 15% of THALES tokens to THALES stakers over a course of 150 weeks. Effectively distributing100,000 THALES per week will be rewarded.
As mentioned before, Thales Improvement Proposal (TIP) number 7 suggested splitting the 100,000 THALES weekly rewards into both Layer 1 (Ethereum mainnet) and Layer 2 (Optimism network). This was voted in and approved by Thales Council on October 12th.
Given that Thales is still only on Layer 1 (we are aiming to change that in the upcoming weeks!), the distribution will start with 50,000 weekly THALES for Layer 1 stakers and will start distributing the other 50,000 weekly THALES to Layer 2 stakers not long after we expand both the platform and the token there.
Once THALES staking rewards have been claimed, those are then moved to the Escrow contract with 10 weeks vesting. The escrowed balance is included in the staked balance for governance voting power and staking rewards. Escrowed rewards that are redeemed are no longer included in the staked balance unless those are staked through the staking contract.
To help offset the gas costs, claiming of the staking rewards will be moved to the ongoing airdrop contract and rewards will be carried over to the next period if those aren’t claimed in a given week.
Remember: THALES token accumulates if unclaimed, there is no need to claim weekly if gas costs are an issue.
Unstaking is subject to a 7-days unlock period during which no rewards are distributed for the amount being unstaked. When the unlock period is over, the unlocked THALES amount can be redeemed.
THALES staking guide
We know all of this sounds pretty straightforward, for those of you who’ve been around the DeFi world for a while.
Reminder: Here is THALES staking page
But for those interacting with staking for the first time, or those needing a detailed staking guide, we’ve prepared this document so you can follow along, stake your THALES and prepare to chill while enjoying the ride. (Edit: Docs are being reworked, will be up again soon)
Reminder: Here is THALES staking guide (🏛️,🏛️)
Next steps
Right now, we are laser-focused on bringing Thales dapp into Optimism network as soon as possible. We are convinced that having Thales working with cheaper fees will enable us to unlock the next milestone in regards to volume, liquidity, and market possibilities.
While we continue making all the necessary arrangements and wait out until key dependencies (like 0x orderbooks) are available on Optimism, we’ve organized a trading competition (happening on ETH mainnet) so more people could try out Thales dapp.
This trading competition has the equivalent of over 50,000 USD in prizes (25,000 THALES, 1,500 SNX, 10,000 ZRX, and exclusive Thales NFTs) and would be running until November 1st, 10:00AM UTC.
If you wanna register for it click here (edit: competition has ended).
And as always, we encourage you to join Thales Discord, where we are always sharing Thales’ latest developments with the community, listening to their feedback, and looking for ways in how to improve Thales.
The mighty Titans get stronger by the day and the band will keep playing louder and louder… stay tuned for more.
Onwards!
