STFX - utility token
gSTFX - token, used for the governance voting only
This page outlines an initial proposal for the first wave of STFX token utility, and will serve as the base layer for future iterations on tokenomic utility on the platform. The defining principle is that staked tokens should accrue outsized economic benefits and utility features.
STFX holders can choose to stake their STFX tokens for six months to receive gSTFX in return, representing escrowed STFX tokens. Holders of gSTFX will have the ability to cast votes and partake in the decision-making process for governance proposals.
2. Single Sided Staking
By staking STFX tokens for a duration of six months, holders can accrue inflationary rewards at a yearly rate of 10%, which equates to a 5% return over the six-month staking period. These APR-based rewards can be claimed at any point in time as liquid STFX tokens.
Although users can unstake their tokens at any time, if they choose to do so before the six-month period concludes, a burn formula will be applied, resulting in a reduced amount returned to the user:
STFX deducted from users as a penalty will be burned from circulating supply.
Example A. No Burn (Unstaking after 180 days):
A user holds 1,000 STFX tokens and decides to stake them for six months (180 days). The user unstakes their tokens after the full 180 days, earning a 5% return on their staked amount. In this case, there is no burn, and the user receives their original 1,000 tokens plus an additional 50 tokens as rewards, totaling 1,050 STFX tokens.
Example B. Burn Applied (Unstaking after 60 days):
A user holds 1,000 STFX tokens and stakes them for six months (180 days). The user decides to unstake tokens after just 60 days. In this period, user have accrued 1.67% in rewards (60 days is 1/3 of the 180-day period, so 5% * 1/3 = 1.67%). User’s total holdings, including rewards, would be 1,016.7 STFX tokens. Since he is unstaking before the six-month period ends, the burn formula is applied. With 2/3 of the time remaining (120 days), 20% of the remaining 2/3 portion of the staked amount (133.4 tokens) will be burnt. In this case, the user will receive his original 1,016.7 STFX tokens minus the burnt 133.4 STFX tokens, resulting in a total of 883.3 STFX tokens returned to the user.
Governance proposals and discussions are available in the official forum on https://gov.stfx.io Voting takes place on https://vote.stfx.io