Crunchy Network CRNCHY Staking
Updated: Jan 9, 2024
Soon™, holders of CRNCHY will be able to stake their CRNCHY to earn revenue from Crunchy Network. Below we will outline how staking for platform revenue will work, how crVOTE will be used to allow users to vote in the DAO as well as the early unlocking option.
CRNCHY Staking Details
After a long bear market, we are finally preparing to launch CRNCHY staking. At launch, users can choose to lock their CRNCHY tokens for 1 week, 1 month, 6 months, 1 year, 2 years or 4 years. The longer you stake, the more staking power you receive as well as a higher reward pool share.
Lets look at an example, if a user stakes their CRNCHY tokens for 4 years, they will receive 100% staking power and 100% of their possible rewards. If a user stakes for 2 years, they will receive 50% staking power and 50% of their possible rewards. Etc, etc.
Staking will operate on a cycle basis with each cycle lasting 7 days. This means that Crunchy Network revenue generated during one week will be released to those who stake the following week.
To jumpstart CRNCHY staking while Sliced.art is completed, we will be placing 5,000 XTZ from the treasury into the staking contract to be distributed over 52 cycles (52 weeks). Also, the buy back and burn contract will be adjusted to allocate Crunchy Network revenue to the staking contract. The buy back and burn will now do the following:
1. 33% will be used to buy back and burn CRNCHY
2. 33% will be deposited to the DAO
3. 33% will be automatically deposited into the staking contract and be earned the following cycle (remember, cycles are 1 week long)
What about the DAO?
For the DAO, when a user stakes CRNCHY they will receive crVOTE. crVOTE will be used to vote in the Homebase DAO as well as withdraw your CRNCHY once your staking period is over. Don’t worry, this isn’t another tradable token. crVOTE is transferable to or from any tz wallet, but for kt addresses it is limited to only the Homebase DAO address. Basically, you can transfer back and forth to tz addresses, but you cannot interact with any smart contract other than the Homebase DAO contract. This helps limit the only utility for crVOTE tovoting on Homebase. With crVOTE, users will be able to participate in our Homebase DAO to propose or vote on proposals while their CRNCHY is staked and earning platform revenue.
Here is an example of staking CRNCHY and how much crVOTE a user would receive:
If a user stakes 1,000 CRNCHY for 4 years, they will receive 1,000 crVOTE. Staking 1,000 CRNCHY for 2 years, users will receive 500 crVOTE, and so on and so on.
Early Unlocking?
What if I stake for 4 years but decide I want to unstake after 2 years of staking? Well…your tokens are locked. HOWEVER, we have enabled the ability for users to unstake early but as a penalty users must burn a portion of their staked tokens based on the amount of time a user has remaining.
For example, if a user stakes 1,000 CRNCHY for 4 years and decides they want to unstake at the 2 year mark, they will be able to unstake but at a fee of 50% of their staked CRNCHY. Meaning they will receive 500 CRNCHY and the remaining 500 CRNCHY will be burned.
We have spent a lot of time ensuring staking rewards those most loyal. We also wanted to ensure we create something that allows for gamification, DAO participation and truly rewards those that hold and stake CRNCHY for a long period of time.
If you have any questions or comments, let us know.
Website: https://crunchy.network
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