CUIP-006 - Staking v2 Proposal [Pass]

Summary

Staking is a mechanism in the nascent web3 industry designed to incentivize holding behavior and encourage voting participation. However, early iterations of staking mechanisms have an inherent flaw in that they incentivize passive staking over active gameplay and community participation. In the context of Crypto Unicorns, staking RBW and voting allows players to participate in making decisions that affect the future of the game and overall IP.

We believe that active players are in the best position to signal the direction we should take as a DAO during the early stages of building our IP and governance system. With this Staking v2 proposal, we plan to be the first in the industry to create a more aligned staking experience by incentivizing active community and game participation through sRBW multiplier boosts via an innovative badge system. This unique badge boost system will enable active players to increase their timelock-based sRBW multiplier for higher staking rewards versus passive stakers. To be able to apply all this, we need to migrate to a new staking contract.

Motivation

  • We believe in incentivizing active players with higher rewards over passive stakers
  • We believe in empowering active players to participate in governance

Details

This proposal is characterized by four major features:

I. Contract Migration

Players’ existing RBW & RBWLP deposits will be migrated to the new staking contract and will maintain the same remaining time duration. Migrating to the contract will also allow LG to take full control of the contract from Vault, Inc. via ⅗ multisig ownership.

  • A. Migrating the RBW/RBW LP Deposits
    • When the new contract is ready, existing deposits will need to be removed from the old contract and moved to the new contract.
      • Vault will manually migrate deposits over to the new contract, so there will be no action needed from the players.
    • Deposits will be restaked for their remaining duration and maintain the original sRBW amount.
    • In addition, Badge Boosts will be applied to the migrated deposit if the player delegates staking badges to their account prior to Vault migrating the deposits.
      • The original sRBW amount tied to the migrated deposit will be increased by the total boosts from the badges the player has delegated prior to migration.
      • We will open a two-week delegation period where players can delegate their badges prior to migrating the existing deposits over. Additional information will be provided through the CM team, as the schedule is dependent on if/when this proposal gets approved.
  • B. Migrating Contract Ownership
    • Upon migrating to the new contract, Laguna Games will have full control of the contract through ⅗ multisig ownership.
      • This is important in mitigating risks by ensuring that no contract changes will be applied without the DAO’s approval.
      • This will also ensure that we have access to the contract in the event that we lose contact with the Vault team. While we do not see this really happening, we want to ensure that we’re prepared for any worst-case scenario.

II. Badge Delegation

Functionality that allows players to delegate badges to a staking account.

  • Players should be able to delegate badges from their playing accounts to their staking accounts.
    • There is no limit to how many badges a player can delegate to their staking account. However, each badge type can only be used once to get a boost. (ex. If there are 2 Summer of Love I badges delegated to a staking account, the staking account will only receive an sRBW boost for one of them.)
  • Each badge will need to be “delegated” for the boosts to apply.
    • Delegation will take place on the Vault UI and will require the players to select a badge, insert their staking address, and sign a transaction to delegate it.
    • Once a badge is delegated, it will be permanently tied to the delegated account and can no longer be removed or redelegated to a different account. This is an important consideration for those who use multiple wallets.
  • As mentioned above, each badge can only be delegated once. Once it has been delegated to an address, the delegated badge can no longer be removed and will indefinitely apply a boost on the assigned staking account.
  • Badges will be delegated on a per-badge basis.
    • If a player so desires, they can delegate their badges to multiple staking addresses. However, it is not possible to delegate a previously-delegated badge a second time to a different account. (Ex. It is possible to delegate 4 different badges to 4 different staking accounts, but it’s not possible to delegate the same badge to two different accounts.)
  • In cases where a player’s playing account and staking account is the same address, the player will still need to delegate their badges to the address.

III. Boosts

Functionality that supports adding sRBW boosts from badges.

  • When a deposit is “staked”, a player will receive sRBW based on the multipliers from both the duration of the time lock and the delegated badges.
    • Similar to how time lock multipliers are applied, each badge will have a designated multiplier per pool id/badge type.
    • Badge boosts do not get applied retroactively. Badges need to be delegated prior to staking for the boost to apply.
      • Delegating a badge after one has already completed the staking operation will not change the existing sRBW balance.
      • Instead, the boost from the newly-delegated badge will be applied to all future staking operations.
    • The contract will sum up the boosts from all delegated badges and the multiplier from the time lock to determine the final sRBW multiplier. This applies to both RBW and RBWLP staking operations.
      • For example, a player stakes 100 RBW for 1 year and has two badges that provide an additional 0.05 convert each.
        • RBW Deposit: 100
        • Time Lock Multiplier: 4
        • Cumulative Badge Boost: 0.1
        • Ending Multiplier: 4.1
        • sRBW Balance: 410 sRBW
  • Only 1 badge per type will be counted in the sRBW boost calculation for each staking wallet.
    • Each badge will be distinguished by “pool id”.
    • If a staking account has been delegated multiple badges of the same pool id, the player will get a boost only once for each pool id/badge type.
      • For example, a player delegated the following badges will have .16 boost:
        • 2 Founders Badge (.1 multiplier per badge)
        • 1 Dark Forest Badge (.05 multiplier per badge)
        • 5 I Survived Badge (.01 multiplier per badge)
        • Total Boost: 0.16 (from 1x Founder Badge, 1x Dark Forest Badge, & 1 x I Survived Badge)
          Note that the boost values here are used only to illustrate the point.

IV. Purging

A functionality that will allow Vault, LG, or the players to purge expired deposits from the staking contract once the grace period has expired. Purging is an important process as it mitigates the ability of expired deposits to generate rewards and maintain voting privileges.

  • When a deposit has expired and surpassed the “grace” period, players/bots will be able to “purge” the deposit and receive a reward. Initially, we’d like to propose a grace period of 14 days from when the deposit expires before the “purge” option becomes available.
  • Similar to vlCVX, it will be possible to call the contract to “purge” a player.
    • Purging a deposit will remove it from the contract and return the player’s original RBW deposit to their wallet.
    • Purging a deposit will generate a reward that is equal to a percentage of the purged player’s deposit.
      • We would like to pose that this fee be set at 0.1% of the deposit.
      • If a player had an expired deposit that equals 1,000 RBW and it was “purged”, the purging address will receive 1 RBW, and the depositing player will receive 999 RBW.
  • Initially, we wish to leave to the players the responsibility of calling the contract to execute the purge on expired deposits. However, Vault/CU will assume responsibility for this if the expired deposits don’t get purged in a timely manner.

Conclusion

This is the first staking mechanism of its kind in the web3 gaming space. With this new design, we challenge the current status quo in staking mechanisms and take a step towards a more aligned experience that rewards involvement in all the different facets of the ecosystem, such as active gameplay and community participation. We ask that community members review this and vote in support of it once it goes on Snapshot.


Discussion: Staking v2 Proposal
Snapshot: Snapshot

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