Setting up the AURORA staking

The AURORA staking mechanics was agreed in this post. According to it, staking of AURORA tokens should result in rewards payed out through streams. Each stream represents a particular project that is allocating the tokens to the AURORA stakers. Multiple streams per project may exist too. One particular stream is treated as an official AURORA stream. AURORA rewards from this stream would be compounded with staked AURORA.

In this post the proposal for the allocation of the tokens and other stream characteristics is discussed.

The rewards APY highly depends on the percentage of tokens staked and the inflow of the AURORA tokens in the market. Some pieces of the inflow are determined (team unlock schedule, private round investors unlock schedule). Such inflow elements are marked as green. However, there are others, which are only estimated. The model of unlocking tokens (including staking rewards) projected for 1y is below. The staking calculated as if it started on 18th of May, together with the first private investors unlock.

  • Allocation of the tokens for the AURORA stream: 6M AURORA
  • Allocation of AURORA tokens to be exchanged into ecosystem project tokens: 3M AURORA
  • Schedule for the AURORA and ecosystem tokens streams: progressive, with 15% allocated within first 3 months, 20% allocated within next 3 months, 30% allocated within next 3 month, and 35% allocated within last 3 months of a year.
  • Cool down period between unstaking and withdrawing of AURORA: 2 days
  • Cool down period between claiming and withdrawing rewards from other streams: 2 days

Things that are not included in the model:

  • New ecosystem token streams that would be created later

According to the model, the projected APY for the AURORA stakers would be around 50% - 85% within the first year.

Default AURORA token stream can be adjusted on the go, depending on the statistics of staking. Also it would be possible to extend it.

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I fail to understand how much the inflation would actually be per year to the aurora system due to staking?

@kiraftw92 we are preparing the in-depth article about token distribution. Please follow our updates.

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