Photon Sphere Staking
Where perceivable reality bends.
Last updated
Where perceivable reality bends.
Last updated
The photon sphere is similar to that of xSUSHI and other staked token wrappers. At the beginning of the xBOL launch, users can stake 1 BOL into the contract and receive 1 xBOL. Over time however this ratio will continue to grow in a skewed ratio of more BOL tokens to xBOL tokens. As the ratio grows more skewed having more BOL tokens in the contract than xBOL, the value of xBOL will increase. This means if a participant stakes 10 BOL in exchange for 10 xBOL at the start, and later the ratio has skewed to 11 BOL tokens per 10 xBOL tokens in the contract, their 10 BOL tokens have now gained 10% value as their 10 xBOL tokens can now be redeemed for 11 BOL tokens. Participants are free to stake into and withdraw from xBOL whenever they desire at the ratio exchange rate during the time they stake or withdraw. But, what drives this ratio to grow ever increasingly skewed to more BOL tokens in the contract than xBOL minted?
10% of all transfer and bridge fees that are acquired by the DAO treasury will be "donated" to the xBOL contract. For instance, in the above example with the participant who staked 10 BOL to receive 10 xBOL and later was able to redeem the 10 xBOL for 11 BOL tokens. If that person was the only staker and minter, this would be possible because after the participant staked the 10 BOL tokens, the DAO treasury would have donated 1 BOL token to the contract. Thus creating the now skewed ratio in the contract of 11 BOL tokens to 10 xBOL tokens minted. The fees don't have to be the only source for xBOL value generation. The DAO treasury can also buy-back BOL tokens and distribute them to the xBOL holders via the staking contract by "donating" those BOL tokens to the contract.
xBOL will be the DAO governance token. Only holders of xBOL will be able to partake in official DAO governance and enjoy other perks that may come from future partnerships such as whitelist and investment allocations or airdrops.