1. Overview This proposal aims to introduce a passive income mechanism for Odos stakers by distributing a portion of the protocol’s revenue to incentivize long-term staking and enhance ecosystem engagement.
2. Background Odos generates revenue through trade surplus capture, simple swap fees, limit order execution fees, multi-token advanced swap fees, partner code revenue, and API plans. Currently, these revenues contribute to the protocol’s sustainability and growth but do not directly benefit stakers. Implementing a staking rewards mechanism will encourage user participation and foster a more decentralized, engaged community.
3. Proposal Details We propose allocating a percentage of Odos’ total revenue to reward stakers in a sustainable and transparent manner. The revenue distribution will be structured as follows:
- Revenue Allocation: 30% of the net revenue generated by Odos will be allocated to a staking rewards pool.
- Reward Mechanism: Stakers will earn rewards proportional to the amount of Odos tokens staked relative to the total staking pool.
- Distribution Frequency: Rewards will be distributed on a weekly or monthly basis to ensure consistent and predictable passive income.
- Lock-up Period: To encourage long-term staking and reduce sell pressure, a tiered lock-up system can be implemented, offering higher rewards for longer staking durations.
4. Benefits
- Enhanced Token Utility: Staking rewards will increase demand for Odos tokens as users seek passive income opportunities.
- Incentivized Long-Term Holding: A reward system encourages long-term staking, reducing market volatility and stabilizing token value.
- Community Engagement: Providing passive income to stakers strengthens community participation and governance.
- Sustainable Revenue Sharing: The allocation of protocol revenue ensures a sustainable model where both the protocol and its users benefit.
5. Implementation Plan
- Phase 1: Feasibility Study – Conduct research on the optimal revenue allocation percentage and reward structure.
- Phase 2: Smart Contract Development – Implement secure and auditable staking contracts.
- Phase 3: Governance Proposal & Voting – Engage the community in finalizing the proposal details.
- Phase 4: Launch & Monitoring – Deploy the staking rewards system and monitor performance for future optimizations.
6. Conclusion By implementing a staking rewards system funded by a portion of Odos’ revenue, we can enhance token utility, incentivize long-term participation, and ensure sustainable community growth. This proposal seeks community support to move forward with the development and governance discussions required for implementation.