Proposing Identity Staking, a feature that allows secure management of identity data and the ability to stake LIT in order to in
24 May 2023, 14:51
📢 Proposing Identity Staking, a feature that allows secure management of identity data and the ability to stake LIT in order to invest in your identity and reputation for benefits.
With the introduction of Identity Staking, terms in the previous inflation model will be changed as follows:
1️⃣ Maintain a consistent inflation rate of 1.5% LIT/year for Collator Staking after May.
2️⃣ Reserve the promised 1% inflation LIT/year in the Identity Staking pool to be rewarded to the community later.
3️⃣ Enable Identity Staking using the reserved pool and the 1% inflation LIT/year, ensuring Collator Staking maintains a steady inflation level of 1.5% LIT/year.
4️⃣ Merge Identity Staking and Collator Staking, resulting in an overall inflation rate of 2.5% LIT/year.
5️⃣ The number of token burns will be changed, as the total collator staking rewards will remain at 1.5%. Under this new proposal, Litentry will burn 377.8K LIT tokens per quarter for the following quarters.
So... What is Identity staking?🧐
The IDHub will offer users different ways to increase their reputation, experience and the quality of their DID. The most active community members will get access to higher staking rewards and exclusive benefits based on their engagement and activity.
We believe that Identity Staking is a great way to foster usage of the IDHub, LIT token adoption, attract Web3 natives and benefit our community at large. We estimate that Identity staking will surpass Collator Staking in the long run. Our aim is to eventually merge the two.
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