Locus staking model

NOTE: The subject of this vote is a Staking model for the Locus token. Please also review other ongoing votes regarding Locus Tokenomics. The full document with tokenomics description is located here: https://docs.google.com/document/d/1b3K_TzRx4L3fr3AW_yQdFYV240XVaqXFyS83DmNthiM/edit

INTRO Staked Locus token generates revenue share, additional yield in Locus for staking and the governance rights on the vault management, protocol parameters, treasury management and incentivisation of vaults.

BASIC ONE-CLICK STAKING The basic version is a one-click staking without any restrictions. Users start to earn a revenue share from vaults and rewards in Locus with the suggested linear unlock of 30 days. Locus tokens can be withdrawn from staking at any time. This is the least complex model that might engage more users.

OTHER POSSIBLE VERSIONS OF STAKED LOCUS TOKEN IN THE FUTURE

Curve veLOC model Users are locking CRV for up to 4 years and receive veCRV as a multiplier between the amount staked and time locked. veCRV is used to navigate emissions and receive revenue share from the protocol with extra returns in CRV. The benefits of this model are the stickiness of holders and the possibility for protocols to accumulate CRV and vote for their pools, which creates a bribe market as additional revenue for veCRV holders. This model can work in Locus by creating a playground for protocols to vote for their products in our omnichain vaults. However, it might be too early for this due to the complexity of participating in the Locus ecosystem.

Balancer veLOC Model Balancer iterated on the model of Curve, reducing the timelock for up to one year and changing the collateral for acquiring veBAL from BAL token to the liquidity pair of 80BAL-20ETH (80% in Balancer, 20% in ETH), which means that the user has to lock a liquidity in order to participate in governance and revenue share. This creates a sticky liquidity for the token, which goes highly in favour of the trend of building more value for the protocol. The liquidity for the token is the most costly thing to sustain, which Balancer addresses pretty well. This is a great model of aligning interest but requires users to put extra ETH into the liquidity pool, which may be used by those who will want to sell tokens.

To summarize The Balancer and Curve models have their advantages, however, we suggest to stick with a basic staking contract in the first few months to establish a foundation for further exploration with tokenomics and the usage of our products.

VOTING QUESTION Do you support basic staking for Locus instead of locking tokens to simplify the entrance for every participant?