FIP#49 - Floor V2 Locking Mechanism Parameters

Summary

Floor V2 will introduce locking as a vital part of the Floor wars mechanic allowing for users to apply their voting power against the new collection and sweep wars. The underlying system works on epochs; a measurement of time that equates to one week. Tokens will be able to be locked for one of a number of predefined epoch amounts, relative to the max lock time. For example, if a max lock time was set to 2 years (104 epochs) then the options for this may be 4, 13, 26, 52, 78 and 104 epochs.

The duration of this lock reflects the vote power that is gained from staking. Locking tokens for the max lock will give 100% vote power, with the vote power being reduced proportionally to the lock duration. Following from the previous example, locking for 52 epochs would give 50% power, 13 epochs would give 12.5% power, etc.

If tokens are unstaked before the full duration, then a penalty will be applied with some of the staked tokens burnt. This penalty decreases as the lock duration shrinks.

This vote will allow us to gauge the community’s desired maximum lock time. Reducing the max lock time will allow for quicker access of staked tokens while maintaining higher voting power. The downside of this is that users can buy tokens to stake for just one or two important votes and then dump them back into a pool, meaning that there is less requirement for ongoing commitment and engagement with the protocol.

This vote will define the maximum lock time, with the other lock times being logically determined underneath it. This change is immutable and once defined cannot be changed.

The penalty amount for early exit will be determined in a separate vote once the max lock time has been decided.

Lock Times Proposed

No locking mechanism 2 weeks 4 weeks (1 month) 12 weeks (3~ months) 26 weeks (6 months) 52 weeks (1 year) 104 weeks (2 years) Amend vote (please make a recommendation) Abstain