- Floki proposes a staking reward token.
- The dual-token system is designed to ensure long-term sustainability.
- DAO voting on the proposal is open for a short period.
Staking has become popular as the passive income strategy of choice for crypto holders. By parking their tokens in staking pools, participants help secure blockchain networks in exchange for rewards, which typically take the form of the native token being staked.
However, some critics argue that standard staking systems that distribute the native token as rewards risk devaluing the token supply over time through inflation. To address this issue, Floki has proposed implementing a dual-token staking mechanism designed to ensure the long-term sustainability of the Floki ecosystem.
The Reward Token
By rewarding stakers with a separate utility token distinct from FLOKI, the developers hope to preserve the long-term health of the Floki ecosystem. This model keeps FLOKI’s supply fixed while providing stakers with a separate asset as yield.
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To earn the new utility token, users will stake FLOKI tokens for a chosen period of between three months and four years. The staked tokens will be locked and inaccessible during this time. However, if users need to access their locked tokens, they can unstake them with a penalty ranging from 5% to 20%.
The Floki team stated that the reward token will be launched fairly, with no price-discounted early access opportunities for insiders or entities close to the project.
“There won’t be a presale or any kind of fundraising. The token will launch with a small pool on Uniswap and PancakeSwap to ensure liquidity is available, but most of the supply can only be earned by staking FLOKI,” explained the Floki devs.
Whether the reward token proposal passes depends on the outcome of a DAO vote. Voting opened on October 18, with polls set to close on October 20. If approved, the dual token staking system is set to go live on October 27, adding another dimension to the memecoin.
The FLOKI Price Jumps
Although technically a memecoin, Floki has designs on being more than a joke cryptocurrency with several utility-driven projects, including its NFT metaverse offering called Valhalla and FlokiFi, which, as the name suggests, relates to decentralized finance.
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On the reward token proposal news, FLOKI jumped 5% to an intraday peak of $0.00001959 to mark a 15-day high. The token’s year-to-date performance has been strong, up 136%. However, FLOKI is down 94% from its all-time high of $0.00033651, achieved in November 2021.
On the Flipside
- Floki is the fourth-largest memecoin by market cap, demonstrating strong growth since its 2021 inception.
- Memecoins are undergoing a period of declining social interest.
Why This Matters
Floki’s novel staking model would pave the way for sustainable crypto staking if implemented. The proposal exemplifies how memecoins can drive innovation and impact beyond just humor.
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