RZR-0001 - Update in the staking dynamics

This is first governance post we'd like to get the community activated on and it addresses a very crucial part about the protocol’s growth. Voting for this proposal will be made live on SnapShot and you can vote with your lstRZR or sRZR balance.

TL;DR

• Replace the upfront Harberger tax with a continuous (streamed) tax plus a very minimal dynamic upfront fee.
• Introduce clear economic incentives to buy stakes.
• Migrate fairly and convert already-paid upfront taxes into tax credits so early users are treated fairly.

Pain Points Identified

1. Upfront tax kills UX & composability. Integrations must swallow a large one-time cost.
2. No strong reason to buy stakes because RZR is liquid; buyers prefer the market unless a stake is underpriced by >5%.
3. 4626 vault integrations pay ~6.5% on entry—too high for partners and LPs to justify.

With this in mind we propose the following changes.

Changes Proposed

1. Convert taxes from being paid upfront to instead be streamed over time.
2. Introduce a dynamic deposit fee for staking mechanism that changes based on demand. 2.1. During periods of high demand, the deposit fee will increase (5-10%) creating a reason for new users to buy stakes as that creates a cheaper opportunity to enter into the protocol. 2.2. During periods of low demand, the deposit fee will decrease (0%) users can easily enter into the staking ecosystem by buying liquid RZR and creating new stakes without any upfront fee. 2.3. When the proposal goes live, the deposit fee will be 0. 2.4. All fees will go back to stakers.
3. We must not punish early adopters who pre-paid tax. To this we have come up with a tax “credit” system where all paid tax is taken from this credit. Snapshot each stake/vault depositor’s unamortized portion of the upfront tax. Future streaming taxes burn down this credit. For vault depositors, the credit lives at the vault and is consumed pro-rata. 3.1 Give early stakers an extra boost in yield for their loyalty