PIP: Add Further Staking Incentives

Add Further Staking Incentives

Add further staking incentives in the form of redistributing fees accumulated on the PlotX platform to PLOT stakers and PLOT liquidity providers and extend current staking incentives to PLOT LP Token stakers.

We need to encourage people to hold the PLOT that they earn from the prediction market or purchase from exchanges. We currently have Play Mining as a staking incentive, which is great, but I think giving people more reasons to hold onto their PLOT will be good for the PlotX ecosystem as a whole and a good way to do that is through passive income.

I propose that 20% of the fees (ETH and PLOT) earned from the platform are redistributed to people that stake PLOT in proportion to the amount that they have staked. I would also extend this to Liquidity Providers and assign a further 20% of fees to this group. This would allow LP tokens to be staked as a way of continuing the yield farming incentives.

For example:

There are 10,000 PLOT staked, made up of 1000 PLOT from 10 different people.
Total fees earned in a 24 hour period equals 500 PLOT and 0.2 ETH
Each of the 10 stakers will receive 10 PLOT and 0.004 ETH

The same scenario would be true of PLOT LP Token stakers.

There are 1000 PLOT LP tokens staked, made up of 100 PLOT LP tokens from 10 different people.
Total fees earned in a 24 hour period equals 500 PLOT and 0.2 ETH
Each of the 10 stakers will receive 10 PLOT and 0.004 ETH

I also propose that the other Play Mining incentives, in terms of extra positions when making predictions should be extended to PLOT LP tokens stakers once the current liquidity mining program comes to an end.

I believe that this proposal will further increase PLOT utility and make it a more attractive long-term investment and also encourage and reward those in the community who are providing liquidity.

2 Likes

We now also have further staking incentives through creation mining, but this still is only available to a small number of people each day, and is a matter of first come first served. I still believe that it would be beneficial to have a share of the fees or a share of each reward pool be distributed to people that stake PLOT or PLOT UNI-V2 liquidity tokens. Then we encourage long term holders who are actually fully invested in the success of PlotX platform and they will have even more reason to support the growth and participate in governance and the prediction markets.

Interesting observations @Kwoz!

  1. I think the Liquidity Miner already get to farm PLOTs thus it might not be the best way for the ecosystem to reward them with additional PLOTs too from the DAO.

  2. I think the DAO funds should only be used for refunding the gas fees to the market creator and for the long term sustainability of the platform, it is important that the DAO is self-sustaining.

  3. I really like the idea of the additional “passive” benefits to the Play Mining stakers but I am not sure where to get the funds from. I think currently, they get to enjoy the play mining multiplier and with the new market creation incentive schema they will have more incentive to participate in Play Mining.

  1. Yes that is the case at the moment but there are only a limited amount of PLOT available for mining. I would suggest only adding additional incentives once liquidity mining comes to an end.

  2. Yes I agree with this, that’s why I would only suggest using a small percentage of the funds brought in by the platform to reward stakers. As the platform grows more funds will come in through fees etc.

  3. The amount distributed would be a percentage so it would start small and grow as the platform grows. The play mining incentives and the market creation rewards are great but to actually make it worth staking you would have to predict and win a significant amount of times and/or create multiple markets worth 1 ETH or more.

The more incentive there is to buy, use and hold PLOT the better.