Currently, all of ApeSwap’s staking pool implementations are designed so that users may withdraw the amount staked at any time. In an effort to increase the burn rate of BANANA and introduce new burning mechanisms, ApeSwap is considering the addition of a special series of vaults which would burn any tokens staked, called “Burning Pools”. Details below.

Option 1: Implement Burning Pools

ApeSwap implements a new page featuring “Burning Pools” that behave differently than our existing pools. Specifically, here’s how they work:

• The Burning Pool would start generating rewards at the “start block,” exactly how all of ApeSwap’s existing pools operate.
• Staking in the Burning Pool would be allowed for a predefined period of time. Specifically up until the “lock block.” Note: The lock block is different from the “end block.” This means the pool would stop accepting new staked tokens before the pool stops providing rewards.
• All staked funds would not be retrievable. This means any funds staked in these pools will not be returned or unstaked by users.
• After the pool is finished (e.g., the “end block” elapses), the owner of the contract (ApeSwap) would be able to execute a function to burn all the tokens staked in the contract.

Option 2: Do not Implement Burning Pools

ApeSwap does not implement Burning Pools.

Appendix & References

When making this evaluation, it’s important to denote the primary benefits of Burning Pools:

• Burning - As the name suggests, these pools will help burn BANANA tokens.
• Higher APRs - Due to the nature of not being able to unstake tokens, burning vaults typically yield substantially higher APRs. This is not a guarantee, but most of the economics balance out so users get higher APRs than other staking options.
• Lock Block - Early entrants in Burning Pools get the most rewards, just like staking pools, but due to the Lock Block (which is the last block where tokens can be staked), early entrants don’t have to worry about later entrants coming in to capitalize on the rewards.