Abstract:
This proposal aims to implement a dynamic APR (Annual Percentage Rate) reward structure for G Stakers, differentiating rewards based on the subscription plans of stakers, including Normal Stakers and Stakers with a Galxe+ subscription (Pro, Premium, and Unlimited plans). The goal is to incentivize stakers, enhance engagement, and encourage higher-tier subscriptions. The varied APR rates will allow for tailored rewards, reflecting the commitment level of the stakers based on their chosen plan.
Motivation:
As G Staking continues to grow, it is essential to provide enhanced rewards to stakers who demonstrate a higher commitment to the ecosystem. By introducing a variable APR reward structure based on subscription plans, we can incentivize users to upgrade their subscriptions, create a sustainable staking environment, and align rewards with user participation and loyalty.
- Incentivize Upgrades: Rewarding higher subscription plans (Pro, Premium, Unlimited) with a higher APR creates a compelling reason for stakers to upgrade, thereby increasing revenue for the ecosystem.
- Boost Staking Participation: A variable APR reward will encourage new users to stake, as well as increase engagement from existing stakers who wish to benefit from better rewards.
- Long-Term Commitment: By tying the APR to the subscription plan, we can foster long-term loyalty from stakers who wish to benefit from consistently high rewards.
Scope:
- Normal Stakers (No Subscription):
- These stakers will receive a base APR like 5% annually.
- Stakers with Galxe+ Subscription Plans:
- Pro Plan: Stakers on the Pro plan will receive an APR of 10% annually.
- Premium Plan: Stakers on the Premium plan will receive an APR of 15% annually.
- Unlimited Plan: Stakers on the Unlimited plan will receive an APR of 20% annually.
- Staking Reward Adjustments:
- The APR rewards will be dynamic, meaning that the rates will fluctuate based on the staking volume and the length of the staking period. However, the above base rates will act as the starting point.
- The APR structure will be reviewed quarterly to ensure sustainability and competitiveness in the market.
- Reward Distribution:
- APR rewards will be distributed monthly to stakers, with adjustments to the monthly payout based on the specific APR rate applicable to their plan.
- Any staking withdrawals will proportionately reduce the monthly APR reward payout.
- Eligibility:
- Only stakers who lock their tokens for a minimum of 30 days will be eligible for the APR rewards.
Success Criteria:
The success of this proposal will be measured based on the following key performance indicators :
- Increased Staking Participation:
- A measurable increase in the number of stakers, especially those opting for Galxe+ subscription plans, within the first three months of implementing the variable APR rewards.
- Subscription Upgrades:
- An increase in the number of users upgrading from the base staking plan to higher-tier Galxe+ subscription plans (Pro, Premium, Unlimited).
- Higher Retention Rate:
- A higher percentage of stakers maintaining their staking position over extended periods, indicating a successful incentivization of long-term commitment.
- Sustainable APR Rewards:
- Ensuring the APR rates are sustainable for the ecosystem and do not undermine the overall economic stability, with ongoing monitoring of reward payouts and staking growth.
- User Satisfaction:
- Positive feedback from the G Staking community regarding the changes, including a survey of satisfaction rates for the staking experience.
Conclusion:
The proposed APR rewards system based on subscription tiers will foster a more engaged staking community, reward loyalty, and incentivize upgrades to higher-tier plans. By creating a dynamic, variable reward structure, we anticipate increased staking participation, higher subscription plan conversions, and a more sustainable ecosystem. We look forward to feedback and approval to begin implementation.