Staking Long to Earn ZF & The Allocation for Long Staking Pool

Proposal:

Allocate 1% emission rate for the Long Staking Pool from the total 20% Swap2Earn rewards. This corresponds to 5% of the total Swap2Earn rewards and equals 20% of the ZF Staking rewards.

Penalty for Long Unstaking:

• Set the burn penalty at 0.2% of the unstaking amount. This is 5 times smaller than the unstaking penalty from the ZF DAO v2 pool, reflecting the proportional difference in reward size.

Rationalization:

Q: Why take the rewards from Swap2Earn and not from Farm2Earn or ZF Staking?

A: According to ZF tokenomics, the current rewards distribution is:

• Swap2Earn: 20% of the maximum supply, emitted over 3 years.
• Farm2Earn: 20% of the maximum supply, emitted over 3 years.
• ZF Staking: 5% of the maximum supply, emitted over 3 years.

Currently, Farm2Earn rewards are distributed across 28 farming pools. Taking Long Staking rewards from Farm2Earn would reduce the APR of these pools and may affect TVL. Meanwhile, ZF Staking is having a balanced APY of about 10% annually. Swap2Earn rewards, to some extent, are currently quite generous. Furthermore, allocating 1% from the 20% Swap2Earn rewards will not significantly impact Swap2Earn but will boost the attractiveness of Long Staking. The growth of Long will then create synergy for ZF to grow much further.