A DeFi Revolution in asset provenance
The PRüF team will soon have their EO staking protocol live on the Polygon mainnet. The contracts are audited, deployed on the testnet, and the interface is being finished to make staking PRüF and getting rewards easy, simple, and fun.
There are two staking systems planned for the PRüF protocol. The first is a pre-release protocol, known as EO Staking, and the second is the distributed governance protocol, called Node Staking. They are fundamentally different protocols, made for different purposes, and work in different ways.
EO (Early Opportunity) staking is designed to create utility, stability, and liquidity for the PRüF token before the full market launch of PRüF. EO stake rewards are funded from a fixed reserve of nearly a billion tokens, set aside expressly to fund EO staking during the pre-market phase of the project. EO stake rewards will vary with the amount staked and the stake maturity period, and these staking “tiers” will change as the project enters different distribution and market phases.
EO staking rewards will start with very low minimum stake tiers with high rewards (15%+) specifically designed to accommodate airdrop participants before the first part of the IDO phase begins. As the project progresses, while the rewards for existing stakes will continue unchanged, new stakes in the lower staking tiers will offer lower returns, and the bar to entry for high reward amounts will increase.
A unique ERC-721 compatible token controls each stake made with the EO staking protocol. Each stake features a face value (amount staked), a reward period, and a reward amount. The stake token earns the reward amount in every reward period that it exists. So, for example, if a stake is 1000 tokens, with a reward period of 30 days and a reward amount of ü10, it will earn 10 PRüF every 30 days. Holders of the staking token can withdraw rewards at any time — stakers don’t have to wait for a reward period to end to get their rewards. In this example, you could withdraw ü5 in 15 days, then another ü5 15 days later.
The EO staking fund is projected to last two years or more. Stakes will pay out at their initial reward rate until the entire EO staking fund is exhausted. We expect that the EO staking program will deliver well over $16m of value to stakeholders during this time.
The total amount of rewards to be earned by any single stake will vary by the number of active stakes and the reward terms of each stake. The EO staking period will generally last longer, and more rewards will be paid to each stake if there are fewer active stakes. Therefore, if people unstake from high reward early stakes, more rewards will become available for remaining stakeholders, even if new stakers establish new stakes of a similar size.
At any time after the first reward period has passed, a stake can be redeemed for its full face value (the amount staked) plus any pending rewards earned at the time of redemption. By redeeming the stake, the token that represents it is burned, and the terms of the stake are no longer available. Since the terms of staking will initially be more generous, tokenized stakes formed in the first part of the EO period may trade above their face value. We expect that many stakers will choose to hold their stakes for maximum rewards until the depletion of the EO fund, trading, restaking, or using rewards paid out during that time.
As the PRüF protocol expands its market reach and the EO fund winds down, Node staking will become available. Tokens staked on nodes will be flex-staked, which is to say there will be no locking periods or limitations on unstaking tokens. Staked tokens will earn a portion of the revenues that nodes they are staked on earn, and in return, they will delegate their voting power to the Node operator.
Node staking will usher in DAO control of the protocol, revenue sharing on nodes, and more DeFi features. As a DAO governed protocol, stakeholders will propose, delegate votes, and vote on proposed protocol adjustments. DAO contracts will directly control the majority of the protocol parameters. In contrast, some other elements, such as upgrading or launching additional contracts, will require manual assistance by the PRüF foundation to accomplish.
Node staking will allow any token holder to share revenues from the protocol, propose changes, and delegate voting power to vote on proposals. The distributed governance enabled by the on-chain PRüF DAO contracts will create a responsive, stakeholder-governed DeFi tokenization ecosystem — agile and informed by design.
Staking in the PRüF protocol brings unique opportunities and features, heralding new forms of tokenized value. With tokenized stakes, DAO governance, and a fully decentralized protocol for asset tokenization, PRüF creates a vibrant and prosperous ecosystem for users and stakeholders alike.