Nodes
Locked Staking
Last updated
Locked Staking
Last updated
Although referred to as nodes, the system works does not actually provide an RPC URL upon purchase. This will change in the future!
The team has implemented nodes (locked staking) in order to incentivize longer holding of the FUDGE token as well as other tokens in the future. The locked staking pool has a fixed token cost per node and delivers a relatively stable return on investment ranging from 1.5-3% daily. The addition of nodes promotes further utility for the token while also incorporating an additional step in our circle of life increasing the ability to generate further revenue from the protocol for the investors!
In order to improve sustainability as well as promote good behavior, the Node contract has gone through a significant update. Nodes have been migrated over to a new model designed to reward those who compound and take profit at a healthy rate while at the same time introduce penalties for individuals who are constantly claiming rewards with no regards to the protocols health.
Please make sure you understand the important changes between the old Node structure and the new one!
Cost: Each node will cost a fixed-price determined by the team
Node-Cap: For the most part nodes will not be capped unless stated otherwise by the team.
Daily Return: Each individuals daily APR will be independent and a direct result of their remaining allocation in relation to the pool's total allocation with a maximum possible daily APR of 1.5%.
Variable Claim Tax: Adjustable claim penalty when under peg (10% by default unless voted otherwise by community) and penalties are returned back to the reward pool.
Compound: No tax when compounding and it will also boost your pool allocation by an adjustable figure (base rate of 10%).
Max Possible ROI: Standard nodes default at a max possible ROI of 300% however this can be boosted by compounding.
Future Rewards: Node holders will also qualify for future rewards and contests.
Cost: Each node will cost a fixed-price determined by the team
Node-Cap: For the most part nodes will not be capped unless stated otherwise by the team.
Return-On-Investment: Although we cannot guarantee a fixed percentage every day. The nodes will generally return from a range of 1.5-3% daily.
Maximum Possible ROI: Each node purchased has a maximum possible ROI of 400%.
Future Rewards: Node holders will also qualify for future rewards and contests introduced later on.
Users may be familiar with the concept of validator nodes which as the name suggest validate transactions on a blockchain, in most blockchain networks these validators are rewarded for their efforts with native tokens. Our nodes are not transaction validator nodes however it's in our best interest to possibly explore this concept and provide/introduce further utility for our nodes!
Nodes often suffer from sustainability issues due to their tokens having no other purpose than simply as a reward token for selling, this too is an issue for algorithmic stable coin protocols. Throughout the lifespan of the protocol the team intends to continuosly explore new opportunities to further implement utilities for the tokens.
Keep in mind this flowchart was created for our previous model, this will be updated ASAP. Many of the points outlined are still relevant!
Due to the nature of our protocol the team has several measures implemented that allows us to keep the node pool funded with tokens without minting more tokens outside of the natural expansion of the protocol:
Token Tax: Fudge has a variable token tax which the team continues to manage depending on the TWAP
DAO: Our DAO is awarded a percentage of the expansion that occurs each epoch the protocol is over a TWAP of 1.01. A ratio of rewards is then redistributed to the node reward pool.
Node Tax: Claiming rewards from the Node reward pool will result in a 10% tax which is returned back into the pool.
Variable APR: Each individuals APR will be independant and a reflection of their behaviour with compounding and claiming.
