Today, we are introducing the reward mechanisms that will govern Injective’s Equinox Staking testnet. This includes an overview of the reward design process as well as explanations behind the various ways to earn rewards.
Equinox staking aims to showcase the true breadth of Injective’s staking capabilities.
Traditionally, incentivized staking programs are events that only target validators. However, we at Injective reject this notion and wish for our entire community to be able to participate within the staking program from day one.
The paramount objective of the Equinox Staking Competition is to secure and maximally decentralize the operation of the every component of Injective Protocol prior to our launch of the official Injective mainnet. To this end, stakers will play a vital role in the network through participation in actions such as delegation and governance.
Whereas the Solstice Trading Competition sought to familiarize our community with the derivatives exchange protocol, our aim with Equinox Staking is to narrow the knowledge gap for individuals who are ready to participate in the full scope of the Injective network consensus upon our mainnet launch.
Reward Design Process
The reward design was devised based on a comprehensive analysis of Injective’s staking process. In the end, our goals for Equinox Staking were the following:
- Properly rewarding active participants on the network in a fair structure
- Enabling both validators and delegators to take part in governance and listing
- Maintaining creatively across Injective so that new ideas can be applied to the ecosystem
- Rewarding participants for finding vulnerabilities or bugs within the testnet
- Amplifying Equinox by adding gamification mechanisms into the reward design
*Please note that these rewards only refer to the Equinox staking testnet, so reward parameters will change upon the launch of mainnet
Delegator rewards will consist of a baseline APY and APY boosts.
Earning the baseline APY (3%) requires delegators to complete the following tasks:
- Transferring INJ (ERC-20 version) to the Injective Chain
- Delegating INJ to a validator
APY boosts can be earned through completing the following tasks:
Claim, re-stake rewards, and also un-stake (+0.5% APY Boost)
Rewards are not going to be automatically staked, so you must take some time to re-stake your rewards.
Un-staking does not mean un-staking your entire holding but rather a small portion of your holdings. For example if you have 100 INJ staked you only need to un-stake 1 INJ in order to get this boost.
Please note that claiming, re-staking, and un-staking must ALL be done in order to get this 0.5% APY boost.
Re-delegate (+0.5% APY Boost)
This means re-delegating INJ to a different validator. Only a portion of your INJ has to be re-delegated. So if you have 100 INJ, only 1 INJ has to be re-delegated for example.
Participate in 2+ Governance votes (+2% APY Boost)
Injective will be governed via a DAO structure. During the Equinox staking process we will carry out some governance votes such as new listings. Participating in these voting processes will be a critical component of Injective moving forward.
Propose a new market for listing (+3% APY Boost)
New listing proposals will come from the community. New proposals will need specifications of all market parameters and rationalizations behind the parameters you chose. For this testnet process, determining whether a proposal is sufficient will depend on the judgement of the Injective team.
Further details on how market proposals operate will be released soon as well.
Have a proposed market successfully listed (+5% APY Boost)
After you create a successful proposal, the community will be able to vote on whether they wish to list that market. This APY boost is earned after you successfully win the voting process.
Special epic tasks (+3% APY Boost)
Throughout the Equinox Staking testnet, we will hold some special tasks to further test the network. This can include aspects such as finding bugs or taking part in new optimizations.
A New Age of Decentralization
Equinox Staking is introducing an entirely new model of incentivized staking in which both validators and delegators can participate. This provides unique avenues for us to test both the staking features and the governance processes that will be integral for Injective moving forward.
About Injective Protocol
Injective Protocol is the first layer-2 decentralized exchange protocol that unlocks the full potential of decentralized derivatives and borderless DeFi. Injective Protocol enables fully decentralized trading without any restrictions, allowing individuals to trade on any derivative market of their choosing. Injective Protocol is backed by a prominent group of stakeholders including Pantera Capital, one of the most renowned venture capital firms in the world, and the leading cryptocurrency exchange, Binance.