Should We Extend $xWALLET Staking Rewards for a Fourth Year?

Author: Ambire Wallet Date: February 27, 2025

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Proposal overview

With staking rewards recently stopping, the Ambire community must decide whether to extend incentives for another year. More than 52.02% of the circulating supply remains staked, demonstrating strong community confidence.

Staking rewards were introduced to encourage long-term commitment and active governance participation in Ambire. With the current allocation ending, the community must decide whether to extend them for another year at the same rate, at a reduced rate, or end them.

The additional staking rewards will come from the DAO treasury. If the community chooses to extend the current reward rate with 4% of the total $WALLET supply, the additional issuance will amount to 5.84% of the circulating supply, and if it opts for 2% (halved rate), it will be 2.92%.

In both scenarios, reward tokens won’t go directly into circulation as they are locked by default.

If extended, rewards will also apply to stkWALLET once it replaces $xWALLET, ensuring a seamless transition for stakers and maintaining the incentive structure.

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Proposal motivation

Encouraging long-term commitment

Extending staking rewards incentivizes token holders to keep their tokens staked rather than withdrawing them. This ensures a more aligned community, a healthier token economy, and governance decisions driven by long-term participants rather than short-term traders.

Increase governance participation

Staking $xWALLET is like holding shares in Ambire's future — those who stake are the ones who decide. More staked tokens mean greater governance power, ensuring active participants shape Ambire’s future rather than passive holders or speculators.

Supporting a smooth transition to $stkWALLET

Extending staking rewards ensures a seamless transition from $xWALLET to $stkWALLET without disrupting existing stakers. Maintaining incentives throughout the migration encourages continued participation, reinforces governance stability, and helps establish $stkWALLET with a strong staking base from the start.

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Voting eligibility

Anyone holding $xWALLET tokens before the snapshot on February 27, 2025, at 15:00 UTC will be eligible to vote.

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Useful Links

Ambire Governance Votes Website GitHub Twitter Discord Telegram Forum