Summary
This proposal aims to strengthen long-term commitment to Renzo Protocol by introducing a tiered incentive programme for $REZ stakers. The initiative will reward users based on the duration and amount of their staking, encouraging loyalty, reducing token sell pressure, and fostering a stronger community.
Motivation
While the current staking rewards are beneficial, they don’t sufficiently incentivise users to stay committed for the long term. By introducing a tiered system, we can:
- Retain community members by offering increasing rewards for loyalty.
- Stabilise tokenomics by reducing sell-offs.
- Encourage smaller holders to increase their stake over time.
Proposal Details
- Tier System Overview
- Tier 1: 1–3 months staked → 5% APY.
- Tier 2: 3–6 months staked → 7% APY.
- Tier 3: 6+ months staked → 10% APY.
- Bonus: Stakers above a certain threshold (e.g., 10,000 $REZ) in Tier 3 earn a small additional airdrop of governance voting weight.
- Incentives
- Rewards will be distributed in $REZ tokens.
- Gamified achievements for stakers: badges, leaderboards, or NFTs for being “Top Staker of the Month.”
- Implementation Timeline
- Phase 1 (Month 1): Set up smart contracts for the tiered system.
- Phase 2 (Month 2): Deploy contracts and test reward disbursements.
- Phase 3 (Month 3): Launch publicly and promote the initiative.
Benefits to the Protocol
- Encourages holders to lock their tokens for longer durations, stabilising the protocol.
- Builds community loyalty through gamification and visible rewards.
- Reduces volatility and boosts token price confidence.