DAO Proposal: Staking Pools Enhancement (Improved stability)

This proposal aims to address the sustainability and strategic alignment of our staking system within the ChainGPT ecosystem. We have identified key challenges, including the finite nature of our staking rewards supply and the potential for increased sell pressure due to positive APY incentives. To ensure long-term stability and to better align incentives with our broader ecosystem, we propose the following options for restructuring our staking pools:

Option #1: (recommended option)

• We will introduce 0% APY staking pools with a higher staking point multiplier as a benefit over the positive APY staking pools, these pools will have an unlimited capacity.
• The total new staking pools that we will introduce: A: 6-Months lock duration, 0% APY, 1.7x multiplier. B: 1-Year lock duration, 0% APY, 2.2x multiplier. C: 2-Year lock duration, 0% APY, 2.5x multiplier. D: 3-Year lock duration, 0% APY, 3x multiplier.

Note: the staking points multiplier will have a 100% effect on the following products: AI NFT Generator, Crypto AI Hub, ChainGPT Pad, and DAO Voting System. 50% effect on DegenPad.

• We will also keep the existing staking pools open so users can choose which pools they prefer to join (the capacity of the existing positive APY pools may be limited, and capacity might not be increased if the demand for the 0% APY pools will be high).
• To continue supporting the rewards for staking $CGPT, we propose to move the ownership of the Farm/Staking allocation provided at TGE (5% of supply) to the DAO Fund and continue covering the costs of the staking rewards from the DAO fund. (The DAO fund will be increased by 5% of the supply of CGPT minus what was already used for staking rewards to date, and will cover the cost of staking rewards moving forward.)

Option #2:

• The new 0% APY staking pools will NOT be introduced.
• We will maintain the existing APY pools by increasing capacity per the demand.
• We will introduce new staking pools: A: 2-Year lock duration, 12% APY, 2x multiplier. B: 3-Year lock duration, 18% APY, 2x multiplier.

Note: the staking points multiplier will have a 100% effect on the following products: AI NFT Generator, Crypto AI Hub, ChainGPT Pad, and DAO Voting System. 50% effect on DegenPad.

• To continue supporting the rewards for staking $CGPT, we propose to move the ownership of the Farm/Staking allocation provided at TGE (5% of supply) to the DAO Fund and continue covering the costs of the staking rewards from the DAO fund. (The DAO fund will be increased by 5% of the supply of CGPT minus what was already used for staking rewards to date, and will cover the cost of staking rewards moving forward.)

Option #3:

• The new 0% APY staking pools will NOT be introduced.
• The new 12% & 18% APY staking pools will NOT be introduced.
• We will not use the DAO Fund to maintain the staking rewards, but once the staking rewards allocation dedicated at TGE (5% of supply) runs out we will immediately reduce the staking pool APYs to 0% across all pools and the multiplier remain the same for all pools.

Recommendation: Option 1

We recommend Option 1 as the optimal approach. It introduces longer-duration locks and a 0% APY pool with a higher multiplier, which may encourage users to stake for extended periods without requiring APY rewards. This would contribute to the sustainability of the CGPT token by reducing sell pressure. Additionally, Option 1 allows us to offer APY rewards to our users for a much longer period, as these rewards will be supported by the DAO Fund once the initial staking rewards allocation is exhausted.

This proposal seeks community input to determine the best path forward, balancing the need for long-term sustainability with the desire to reward loyal participants in the ChainGPT ecosystem.

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Disclaimer:

The information provided is for informational purposes only and should not be considered legal, financial, or investment advice. Participants should consult professionals and conduct their own research before engaging in any activities. The project team and organizers are not responsible for any financial losses or legal consequences. Participation in this DAO proposal and potential event is restricted for residents of the following countries: USA, Canada, Tunisia, Qatar, Nepal, Morocco, Iraq, Egypt, China, Bangladesh, Algeria. Participants should not expect any profits or increased value of the utility token CGPT from this event.