[Core] Select New UNFI Staking Parameters

Selection of new UNFI staking maximum capacity

Background

UNFI staking on Ethereum began on January 1, 2021. At the time, a maximum of 500,000 spots were available for UNFI holders to stake. It did not take very long until all spots were taken. This locked a significant portion of UNFI’s circulating supply into staking.

UNFI staking was designed so that as it reached maximum capacity, the APR on staking was higher for all stakers. Initially, ~40% APR was offered at maximum UNFI staking capacity. In April 2021, the maximum staking capacity was raised to 600,000 staking spots. The APR at maximum staking capacity was also adjusted to ~36%.

UNFI community governance approved a referendum requesting an increase in the maximum capacity of UNFI that can be staked. That referendum stated, “If this referendum is approved by UNFI holders, Unifi will create another multiple choice staking referendum. In that referendum, UNFI holders will select the new increased maximum capacity for UNFI staking.”

Points of consideration

Staking UNFI is not currently required in order to allow UNFI holders to participate in governance decisions.

The current staking contract was created to be a mechanism for early UNFI holders to be more involved. This placeholder contract is currently being upgraded. When that upgrade is complete, it will be reactivated with the parameters as selected by this referendum.

Unifi Labs is currently working on the next phase of UNFI staking with a further emphasis on allowing UNFI governance functionality. That contract is expected in the next few weeks to a few months. As that contract nears deployment, UNFI holders will be requested to give additional guidance on new staking parameters.

UNFI governance is now being asked to select one of the following four options to be enacted as the new interim guidelines for UNFI staking. For each selection, there are two data points listed. These reflect the projected results of the changes requested by UNFI governance. All numbers and APRs listed are approximate for ease of reference, and to accommodate fluctuations in the numbers of days in different months.

(A) New Maximum APR - This lists the maximum APR that can be achieved when the maximum capacity of UNFI has been reached.

(B) New Maximum UNFI Capacity - This number would be the new maximum capacity of UNFI that can be staked until UNFI staking would be considered full

Referendum Question

Parameters are listed in the order of A/B as described above. That is: New Maximum APR // New Maximum UNFI Capacity

Which staking parameters should be enacted for UNFI staking?

Choice #1 - 24% // 816,000 UNFI Choice #2 - 27% // 728,000 UNFI Choice #3 - 30% // 680,000 UNFI Choice #4 - 32% // 637,000 UNFI