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SIP-0030: Concentrating Staking Revenues - is now live for voting in the Sovryn Bitocracy! Have your say in the future of Protocol fee distribution. Voting will be live for 24 hours from the time the voting begins.
SOV can currently be staked through one of two methods - manually staking liquid SOV to the Bitocracy or earning vesting SOV, which is automatically staked during the vesting period. So far, staking revenues have been paid to all stakers, regardless of whether the stake is encumbered by a vesting contract or not.
There is a very large amount of vesting SOV, and more are being added through yield-farming and lending every day. The fees earned by the Protocol are being split between this large amount of vesting tokens and fully-vested tokens. Many in the community believe that people who manually stake their liquid SOV tokens deserve more recompense for their commitment to the Bitocracy system.
This SIP will modify the Fee Proxy and Staking contracts so that staking revenue is only paid out to fully-vested stakes. Staking revenues will be divided among fully-vested stakes pro-rata, on a block-by-block basis according to the fully-vested stake’s voting power.
A fully-vested stake is defined as staked SOV that is not encumbered by a vesting contract.
In discussing SIP-0024, members of the Sovryn community determined that this arrangement is incompatible with the intention of vesting contracts, which is to incrementally increase SOV ownership and economic power over time. SIP-0030 proposes to extend the logic of SIP-0024 to all protocol revenues, making only fully-vested stakes eligible to receive a pro-rata share of revenues.
Essentially, SIP-0030 will increase the earnings of those who have staked liquid SOV and stop the earnings for vesting tokens (that are automatically staked). This will not impact the voting power of vesting or vested SOV, only the distribution of fees earned by the Protocol.