Setting CYBER Staking Incentives for the Upcoming Quarter - Q4 2024

Proposals
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Point of Contact: Roy from the Cyber team
Proposal Type: Community Treasury

Executive Summary
This forum post aims to set the allocation of new staking incentives for the upcoming quarter. The current staking incentives have been allocated through September 14th, prior to the establishment of the DAO. However, as outlined in the Mainnet Staking announcement, it was intended that CyberDAO would set future incentives:

“Moving forward, staking rewards each year will be determined through DAO governance and are subject to change.”

This discussion post initiates the process for setting staking incentives for the quarter from September 14th to December 14th, now that CyberDAO has been established through the ratification of its Working Constitution.

For the quarter beginning September 14th, allocating 250k CYBER for staking incentives is proposed. This would offer substantial incentives for CYBER stakers while ensuring the program’s future sustainability.

Key stakeholders include:

  • CYBER stakers, the participants who make up CyberDAO
  • Existing members of the Cyber community
  • Future members of the Cyber community

The goal of this discussion is to gauge the community’s perspective on setting CYBER staking incentives for Q4 2024 at 250k CYBER.

Motivation
The motivation behind this proposal is to set the CYBER staking incentives for the upcoming quarter and to establish CyberDAO’s authority as the governing body responsible for setting staking incentives moving forward.

Specifications
This post aims to initiate the discussion on staking incentives for the upcoming quarter, following the completion of the quarter ending on September 14, 2024. For the upcoming quarter, from September 14 to December 14, setting the staking incentives at 250k CYBER is proposed. This would maintain a highly competitive rate compared to other staking incentives in the market.

When considering the reward rates (another term for staking incentives) of other networks, allocating 250k CYBER for staking incentives would keep CYBER among the most competitive. This allocation is estimated to result in a rate of 22.39% APY*.

For comparison, here are the reward rates of some other networks:

*These rates are estimations, or based on recent stake amount, the actual reward rate/APY is subject to change based on the total amount staked.

Research indicates that during periods of high market volatility, like now, staking incentives are less effective at boosting staking volume. Additionally, there has been low activity related to staking or unstaking on Cyber. Therefore, increasing the reward rate might have minimal impact on the total CYBER staked and could reduce the CYBER available for staking incentives in the coming years. Setting CYBER staking incentives at 250k for the next quarter strikes a balance between keeping rewards competitive and ensuring the program’s sustainability.

Success Criteria
Success for this proposal is defined by one major outcome:

  • Maintenance of a Comparable Stake Ratio: The current Stake Ratio (the ratio of staked CYBER to CYBER’s circulating supply) stands at 17.10%. A key measure of success will be maintaining this ratio, which demonstrates that CYBER staking incentives remain attractive and competitive within the broader market. By setting the staking incentives at 250k CYBER for the upcoming quarter, the aim is to offer a reward rate that is not only competitive but also sustainable, aligning with the overall health and stability of the CYBER ecosystem.

By achieving this outcome, the Cyber ecosystem would remain competitive and continue to attract both current and future members.

Action Plan
As outlined in the Processes & Governance Procedures, this forum post would initiate the beginning of a 12-day discussion period. During this time, community members are encouraged to provide feedback on the proposed staking incentives for the upcoming quarter.

Following the discussion period, there will be a 2-day voting delay. This delay allows time for the delegation of votes and the acquisition of new staked CYBER tokens before the snapshot occurs. If the feedback indicates significant community dissatisfaction with the proposed incentive rates, an updated proposal will be submitted to the forum for further consideration.

To pass this proposal, it must meet the required quorum of 30% and receive at least 51% approval. If these thresholds are achieved, the staking incentives will be set for the upcoming quarter as proposed. If the proposal does not meet these thresholds, a new proposal with adjusted staking rates will be introduced.

Conclusion
In summary, this proposal seeks to set the staking incentives for the upcoming quarter and establish CyberDAO’s role in setting future staking incentives. By allocating 250k CYBER for staking incentives for the quarter beginning September 14th, the aim is to maintain a highly competitive rate that aligns with market standards, while ensuring the long-term sustainability and growth of the Cyber ecosystem.

The success of this proposal will be measured by maintaining a comparable stake ratio. Through a balanced approach, CYBER will remain an attractive staking option while enhancing the ecosystem’s economic security.

As this moves into the discussion and voting phases, the active participation of the community is crucial. Your feedback will shape the final proposal, ensuring that the staking incentives reflect the collective interests of the CyberDAO members.

  • Objective: Set the stake incentives for the upcoming quarter and affirm CyberDAO’s role in setting these incentives moving forward.
  • Participation: Active governance participation is limited to CYBER token stakers, specifically cCYBER holders.
  • Success Metrics: Successful establishment of the new staking incentives for the upcoming quarter, maintenance of a comparable stake ratio.
  • Voting Requirements: A 30% quorum and a 51% approval rate are required for the proposal to pass.
6 Likes
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I think a fair enough APY for next quarter, maybe cutting awards in half will cause discontent, but compared to other projects this is a very good return.

3 Likes
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Good propose. I think it’s a good opportunity for CYBER to increase impact on Web3 :slight_smile:

3 Likes
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I think you should double the amount of incentives because of decreasing the price CYBER approximately in 3 times.

5

Looks good enough to go with, quite high APY in comparison with other projects

2 Likes
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I think it is necessary to make a 300-350k reward for stakers, so that after September 14 there will be no strong sales of the token and there will be an incentive to keep it.

1 Like
8

And I propose to add additional rewards for those who have 1k Cyber ​​tokens or more. So that people are motivated to buy more 1k tokens and hold them and receive an additional bonus for this

1 Like
9

When compared to comparables, the suggested rate does seem to strike a balance between being very competitive in the short term and maintaining the ecosystem’s long-term health. The overall crypto landscape has experienced a drop in price. We shouldn’t expect the staking rate to make up the difference.

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1 Like
10

The rewards are good, but those who got in early are unlikely to see profits anytime soon. Hopefully $Cyber ​​will “grow up” or else the motivation will be gone.

11

I think this sounds like a pretty solid plan! The APY% is attractive enough to draw in users, while also being conservative with Cyber tokens during times of lower-activity.

It seems like a responsible course of action for Q4, and I approve :+1::sparkles:

12

Thanks @Wolfer . I’m agree with you ! :+1:

1 Like
13

Apy is not enough until next year june will be double supply and you guys are cutting our rewards at least just continue from 500 k cyber per season dont be stingy. The number of coins will increase by 100% in 1 year.

14

Thank you all for your feedback. We think the current proposal for 250k makes the most sense for the upcoming quarter because it strikes a balance between offering strong staking incentives now and ensuring long-term sustainability.

It is important to note that this is just a proposal. We encourage all stakers to vote whether you’re in favor of the proposal or against it. If you do not agree with the proposed amounts please vote once the proposal is live. The proposed amounts are only for the next three months and future quarters staking incentives will always be set by CyberDAO.

As @alexpoon_hk mentioned, the crypto market is volatile right now, with prices down across the board. We shouldn’t rely on staking incentives to make up for the drop in token prices, as that would be short-sighted and could limit what’s available in the future.

Regarding additional rewards for stakers who stake 1k CYBER or more, this is something we can consider as a community and potentially include in upcoming DAO votes for CYBER staking incentives. We’d like to see more discussion on this before making changes to the current proposal. If you’re interested, please start a discussion post on the forum for this topic.

Cyber, as an L2, is just getting started, and we want to see it grow and thrive for many more years so it’s important to balance short-term and long-term goals and incentives. Our goal for now is to position Cyber for success so that when the market stabilizes, Cyber is ready to attract new users and projects. We believe this would have the biggest impact for the Cyber community and ecosystem, including stakers.

Overall, we believe the proposed incentives are a good balance because the estimated APY is competitive compared to the rest of the market and it ensures enough for future staking incentives. Happy to see all those discussions here!

4 Likes