Staking Incentives for Q3 2025
Point of Contact: roy.cyber
Proposal Type: Community Treasury → (Staking Incentive Allocation)
1. Executive Summary
This post initiates discussion on lowering the quarterly staking incentives from 250k CYBER to 200k CYBER for Q3 2025 (July 1st – Sept 30th 2025). The aim is to keep rewards competitive while slowing emissions and freeing 50k CYBER for future DAO priorities. At today’s levels—44 M CYBER circulating, 4.2 M staked (~10 % stake ratio)—the reduction would move the indicative APY from ≈24 % → ≈20 %, assuming amount of staked CYBER remains stable.
2. Motivation
- Treasury sustainability. Since Q4 2024 the DAO has allocated 250k CYBER per quarter for staking incentive. Cutting 20 % extends the runway by ~1.5 years without materially undercutting yield attractiveness.
- Market reality & tokenomics. CYBER’s circulating supply has doubled over the past 12 months, pushing the stake ratio down from 17% (Q3 2024) to ~10% today; yet APY has actually risen (22.4% → 24%) due to higher token emissions . A modest trim reins in the outsized real yield and aligns with peers.
3. Impact Analysis
- Yield competitiveness. Even at 20% APY, CYBER remains in the top decile of staking yields and on par with leading protocols/l2s.
- Security & governance. With a 10% stake ratio the network has headroom before liveness or governance thresholds are threatened. Historical data (Q4 2024 forum discussion) suggests incentives are a weak lever for stake growth during sideways markets .
4. Success Criteria
- Maintain or increase stake ratio ≥ 10% through Q3 2025 close.
- Forum & on-chain quorum: ≥ 30% participation and ≥ 51% approval per DAO.
5. Conclusion
Reducing quarterly incentives by 50k CYBER or 20% preserves the long-term sustainability of CYBER emissions while keeping staking yields among the best in class. Feedback during the discussion window is essential—please share data, concerns, or alternative models so we can refine the formal proposal before it moves to snapshot and on-chain vote.