[GIP-003] Introducing Flexible Staking Rewards for SEED Stakers

Summary

The current SEED staking rewards system, which offers rewards in cbBTC, has been active for approximately 7 months. While it has attracted new stakers, the SEED token price and holder growth have not matched the growth of the Garden protocol. This proposal aims to introduce flexible staking rewards, allowing stakers to choose from multiple reward options, including cbBTC, native BTC, and SEED buyback.

Objective

Update the staking rewards system to provide stakers with flexible reward options, increasing the attractiveness of staking SEED and promoting token holder growth.

Motivation

The current rewards system, while attractive to some, may not be the best option for all stakers. By introducing flexible rewards, we can cater to different staker preferences, increase the appeal of staking SEED, and promote token holder growth.

Specification

Upon approval of this proposal, the staking rewards system will be updated to include the following reward options:

cbBTC: The current rewards system will remain available for stakers who prefer this option.

Native BTC: Stakers will have the option to receive rewards in native BTC, providing a more direct and decentralized reward experience.

SEED Buyback: Stakers can choose to receive rewards in the form of SEED buybacks, promoting token holder growth and increasing the attractiveness of staking SEED.

The rewards system will be designed to allow stakers to switch between reward options, with an epoch cooldown period (initially discussed as 5 epochs) before rewards can be changed.

Vote

SEED stakers will be eligible to vote on this proposal. Each 2100 SEED stake will grant one vote, with the total vote count being multiplied by the staking multiplier, determined by the lock-in period. The proposal is considered approved if it reaches a quorum of 6000 votes.

Useful Links

• GIP-002: Switch Staking Rewards from SEED to BTC
• https://claude.ai/public/artifacts/d204890b-364e-4197-be02-b7964a236629