Crunchy DAO Update
$crDAO Staking is coming!
Current as of 24 August 2022
This is NOT financial advice!
The Team has been diligently researching and working on the best possible methods, platforms, and processes for the Crunchy DAO. Once released, we want to ensure there are no issues and that the keys can be safely handed over. If you have been following our progress you would know that we have been working with Tezos Commons on improving the Homebase DAO platform for our DAO’s use. We have overcome most of the issues faced, but have one last one thing to sort out, $crDAO staking.
Homebase’s current capabilities do not allow for staking and receiving rewards, only voting and asset management. In order to use $crDAO for voting it must be locked into the Homebase contract. We have come up with a clever way of solving this issue that will not affect the $crDAO token’s voting ability.
Now, I know what you’re thinking, “What? Another token!?” However, $crVOTE is not your normal FA2 token. $crVOTE will be non-transferrable. It will not be tradeable, swappable or sendable. It will only ever exist between the wallet that holds the $crDAO from which it originated and the Homebase DAO contract.
$crVOTE will be the Crunchy DAO mechanism for voting. It will be the token that is locked in Homebase. When a user stakes $crDAO in our new contract, 3 main functions will occur:
· The user will be locked into a staking contract and will start earning rewards
· A calculated amount of $crVOTE will be minted to a user’s wallet
· The newly minted $crVOTE will automatically be deposited to the Homebase DAO
Rewards you say? 👀
Yes that’s right! Finally rewards time baby! When a user stakes their $crDAO, they will have a choice for how long to lock their tokens in the staking contract. This will determine two things:
· The rate of return on rewards
· The amount of $crVOTE minted
The longer lock a user chooses, the higher the rate of rewards and voting power they will acquire. The locking periods will be:
· 2 years
· 1 year
· 6 months
· 1 month
· 2 weeks
· 1 week
When the locked period is over, users can burn their $crVOTE and withdraw their $crDAO from the contract.
Rewards will be accrued from all fees that Crunchy services generate and initially 10% of all fees generated will go directly to staking rewards. We will also jumpstart rewards using 1,500 $XTZ from the Crunchy treasury spread out over the first 6 months of staking.
Lastly, rewards will be paid out in 30-day cycles based on the fees generated the previous 30 days, thus rewards will vary.
Our goal to have staking live Q4 2022. We of course have some pie to serve first!