How about increasing the staking rewards

Now only 10% of $FIDA burned is distributed to stakers. Can we increase the ratio(Maybe about 20-30%)of $FIDA burned and distribute more rewards to attract more people to stake their $FIDA and let the $FIDA price up

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It is a great idea raising staking reward from current 10% to 30% of buyback and burn.

  1. Higher percentage of buyback and burn as reward for FIDA staking would encourage more staking lockup, which would reduce FIDA sell pressure and help stabilize FIDA price.

  2. For token holders during this bear market, locking up FIDA for higher yield would prevent irrational and panic selling, which may cause big loss for investors. If one believes the long term potential of Bonfida, why would he or she sell the token at the current depressed prices while staking can provide much attractive yield. Normally I would not recommend locking up for long term during bull market because you want get out before the market turns bearish. But in bear market, locking up some token for the long term maybe a way to live through those market turbulences.

  3. Raising staking reward from 10% to 30% of token buyback and burn would not have any negative impact on Bonfida cashflow. The team has sufficient cash at hand is critical for Bonfida to survive and develop in the bear market, which may last for one or more years.

  4. Raising staking reward from 10% to 30% would reward more for long term investors and believers in Bonfida. Pure buyback and burn just indiscriminately rewards long term investors and short term speculators. We should promote long term investment, not short term speculation.

Therefore, I believe raising staking reward from current 10% to 30% of buyback and burn should be beneficial to both Bonfida and its investors. We should make a proposal for this and let token holders vote to decide.

hey @Kevin and @MJMEGA

Thank you for putting together your thoughts. However, after internal discussion, we think it’s better to keep the current 10% for the rewards.

The reasons being:

  1. the current Annualized APY is already > 50%, which we think it’s already attractive.
  2. during the current markets, we doubt that increasing rewards percentage can lead to significant growth of staking.

please kindly let us know if you have any questions.

Thanks for your feedback @cynthiaqqq . I have some further thoughts on the two reasons you mentioned.

“1. the current Annualized APY is already > 50%, which we think it’s already attractive.”
I guess your >50% yield is based on the current FIDA price of 0.47USD, which is just a fraction of most gFIDA holders token cost. For their real initial investment in FIDA, the current yield is way too low. Besides, Bonfida revenue is kind of denominated in USD and the yield would go down once FIDA price appreciates.

“2. during the current markets, we doubt that increasing rewards percentage can lead to significant growth of staking.”
I cannot say there will be definitely significant growth of staking if we raise the reward. But some token holders will probably do stake in the current market condition. I personally did stake for the sake of not panic sell at the depressed price. Some token holders may be struggling to make decisions, as I did not long time ago, between selling at deep loss or holding out the bear market. Raising staking reward would encourage them to stake for attractive yield during the bear market. I have some positive DM feedback from Telegram group since I posted my thoughts on raising staking reward a few days ago.
Most importantly, raising staking rewards gives long term investors/stakers more benefit without any negative impact on the project’s cashflow. And it also kind of make up a bit for gFIDA holders who have incurred substantial losses as a result of the huge price drop.

Therefore, I will make a proposal for gFIDA holders to vote. Let them to decide.