XIP #29 Addendum: $PROPR Staking & Pledging Structure

Summary

Following the approval of XIP #29, this addendum seeks community input on the structure governing how $PROPR rewards are distributed to $XBG holders, and how the existing pledging program interacts with the new hard staking mechanism.

The pledging program will pause on Monday, February 23rd. All outstanding rewards for the current month will be fully emitted. The program reopens the following day. This reset ensures that holders who choose to transition to hard staking are not penalised for breaking their streak.

Options

Option 1: Hard staking only

The pledging program pauses, the only option for $XBG holders is to hard stake to receive $PROPR and pledging restarts after the $PROPR TGE. This was the initial suggestion because it would significantly reduce net $XBG emissions throughout most of 2026, tightening the token economics during a period where supply reduction matters most.

Option 2: Parallel programs, separate pools

Both programs coexist. Hard stakers receive $PROPR but no $XBG during their lock period and pledgers continue earning $XBG at the same reward rate (1M $XBG/month) with the existing multiplier system. As hard stakers are removed from the pledging pool, the remaining pledgers effectively earn more per $XBG staked than in previous seasons, since fewer participants share the same monthly allocation.

Option 3: Parallel programs, shared pool

Both programs coexist, but the 1M $XBG monthly emissions are distributed across both hard stakers and pledgers. Hard stakers receive $PROPR plus a share of $XBG rewards. Pledgers receive less $XBG than in Option 2, as the reward pool is now split across a larger base.

Option 4: Pledging only, no hard staking

Keep pledging as is and add $PROPR rewards on top. We believe this is the weakest option for several reasons:

1. No supply reduction: Pledging doesn't lock anything, tokens stay in wallets and are sellable at any time. Without hard staking, there's no buying pressure and no improvement to $XBG's token economics. We lose our strongest lever for 2026.

2. Misaligned distribution: Some $XBG holders have explicitly said they have no interest in $PROPR. Distributing tokens to people who don't want them means they sell on day one. We'd rather reward holders with $XBG through pledging, which is what they want and reserve $PROPR for those who commit by locking.

3. No signal of conviction: Without a lock requirement, there's no skin in the game and no differentiation between passive holding and genuine commitment. The airdrop becomes a participation trophy.

Voting

Cast your vote for the option you believe best serves $XBG holders and the long-term health of the ecosystem.

Option 1: Hard staking only
Option 2: Parallel programs, separate pools
Option 3: Parallel programs, shared pool
Option 4: Pledging only, no hard staking