The purpose of this CIP is to gather support within the community to pass a vote to implement a Staking Rewards Program rewarding Stakers with $COW Tokens. This will reduce circulating supply, fostering a healthy ecosystem for holders and the DAO.
This CIP proposes that CowDAO releases $COW tokens from it’s treasury using a smart-contract via a simple user interface to reward $COW Token Stakers for staking $COW Tokens. This will encourage token holders to stake the asset and will advance CowDAO benefiting all holders by reducing circulating supply, directly impacting token supply/demand dynamics.
Benefits of $COW staking are:
- Ongoing staking rewards encourages $COW to be staked;
- Reduced circulating token supply impacting market supply/demand dynamics;
- Staking incentives makes $COW more desirable to others;
- It may encourage more people to own the token and bring new users to the CowSwap platform aligning with CowDAO’s values;
- Stakers receive $COW token staking rewards proportional to their stake at a rate of 10% per month.
It is proposed that the community can discuss this proposal in various forums such as Discord, Twitter, the CowDAO forum, etc., and that this CIP is tabled for voting on Snapshot.org for voting.
It is envisaged that the CowDAO team shall:
- Share this CIP in other forums (Discord, Twitter, etc.);
- Table this CIP for voting on cow.eth snapshot space for a nominated period after enough participants are available for a fair vote;
- Release a claimable POAP for those who participate in order to encourage voting; and
- If the vote passes the CowDAO technical team shall make $COW redeemable at the prescribed rate to eligible Liquidity Providers only.
A quorum is proposed that would require 35M vCOW tokens required to vote YES in order for this proposal to pass. Additionally, in order for a proposal to be approved, YES votes should account for >50% of total participating votes. (simple majority). This means that at least >17.5M votes in the affirmative is required to pass.
- Incentives holding and staking the $COW token
- Reduces circulating supply impacting supply/demand dynamics;
- It may encourage more people own the $COW token, which in-turn may encourage further interactions with the CowSwap protocol; and
- I believe it is what the cowmunity wants.