Community - Single Sided Staking
10% of the total supply of Probably Nothing tokens are allocated for staking rewards.
There are two primary types of staking that will be available to Probably Nothing holders:
- Dual-Sided Staking (LP Staking) - To be delivered in the future
PRBLY Rewards tokens are kept in a Gnosis multi-sig wallet with 3 of 5 signers required to execute a transaction. All 5 of the signers are Probably Nothing team members. These are and will be deployed to staking smart contracts for distribution as rewards. The Gnosis Wallet can be found here: https://app.safe.global/eth:0x1003405d2b8A02E4102AC40C1C7Cc7B4B3de1fc8/home
To participate in single-sided staking, you send your PRBLY into the staking contract and you get back a staked PRBLY token (sPRBLY) which represents your share of the staked tokens + accumulated rewards since your deposit. You can add the sPRBLY token to your wallet using this contract address: 0x3808b6e0f081bAa9383654a45D092E3b4bFE3394
Single-sided staking rewards have been budgeted for a period of 24 months. Rewards vest evenly over time and are distributed evenly across PRBLY staked. There is no advantage for using multiple wallets.
The exact rewards rate varies as tokens are staked/unstaked. Since rewards are a fixed budget over time, as more tokens are staked, the rewards rate naturally comes down, and as tokens get unstaked, rewards rate increases.
A more technical explanation of staking and the ratio of PRBLY staked to sPRBLY received:
The PRBLY/sPRBLY ratio changes monotonically in favor of the sPRBLY holder. At the beginning, 50 PRBLY will get you 50 sPRBLY. But once rewards start vesting, the staking pool will have more PRBLY than there exist sPRBLY "shares" of the pie. So 1 PRBLY will then give < 1 sPRBLY. Let's say later you deposit 50 PRBLY again, and you get back 40 sPRBLY. Well that means the PRBLY/sPRBLY ratio is 50/40=1.25, so the 50+40=90 sPRBLY you hold would be worth 90*1.25=112.5 PRBLY now. The extra 12.5 PRBLY is from the 25% reward on your originally staked 50 PRBLY. Since the PRBLY/sPRBLY ratio changes monotonically in favor of the sPRBLY holder, you will always get back as much as you deposited. And for every vest epoch in between your stake/unstake, you will accumulate rewards