Last Monday PieDAO launched its much anticipated DOUGH staking — or in other words, the opportunity for the most loyal DAO-ers to lock up the governance token for a given period of time, in exchange for voting power (and decent sized monthly paycheck — in the first month only, over $1.3m will be distributed among what’s currently only 124 addresses — do the math!).
Why was this done?
Since the beginning of time, PieDAO — and all organisations for that matter —have struggled with the problem of short-term gains versus long-term alignment.
veDOUGH (the staked version of DOUGH) was created as the mechanism to align incentives with long-term token holders, and encourage active participation in governance matters.
Since the launch of DOUGH staking, in just one week over 20% of circulating DOUGH supply has been staked for *3 years* by 124 addresses. That’s an enormous amount of commitment and trust into the future of the project, and it’s only the beginning.
To capitalise on this positive momentum and drive even more committed governance members towards the project, we are announcing the launch of UMA-based KPI options, designed to boost the amount of DOUGH staked.
What is a KPI option?
If you haven’t come accross the term yet, Key Performance Indicator (KPI) options are synthetic tokens that will pay out more rewards if a project’s KPI reaches predetermined targets before a given expiry date. Every KPI option holder has an incentive to improve that KPI because their option will be worth more. This is intended to align individual token holder interests with the collective interests of the protocol.
What does this mean in practice?
If we managed to hit the milestone of over 20% DOUGH staked in under a week by the efforts of a handful of individuals, can you imagine where we can get by coordinated efforts or a several-thousand people community? Sky is the limit.
Following a successful vote by PieDAO governance, 5,000,000 DOUGH will be used as collateral to back 10,000,000 KPI options. These KPI options will be distributed in the 1st week of November pro-rata to all who hold veDOUGH by 31st of October.
The maths is simple: the metric of interest is amount of DOUGH locked in the staking contract (live numbers are always shown here), and the equations are as follows: The target date at which the timestamp of DOUGH staked will be made is 30th March 2022.
- If at least 7.5m DOUGH is staked by the agreed snapshot date of 30th March 2022, the 10m KPI options will convert to 1m DOUGH, distributed to all KPI option holders shortly after the snapshot date.
- If 10m DOUGH is staked, the 10m KPI options will convert to 2m DOUGH
- If 15m DOUGH is staked, the 10m KPI options will convert to 5m DOUGH
This is represented in the step function below:
This means that if 15m or more DOUGH staked KPI is hit (only 3x what we hit in a week!) by 30th March 2022, you can get 0.5 DOUGH per every KPI option you’ve been airdropped. Not bad?
How can I participate?
To be eligible for the KPI option airdrop, you need to have veDOUGH (i.e. stake your DOUGH) by the 31st of October. The amount of KPI options you will receive will be pro-rata to the share of veDOUGH you hold versus the total (up-to-date totals can be found here).
- To learn how to stake DOUGH, go to our user guide for Staking here;
- To learn more about UMA KPI options, head here;
- For any other questions or help, join our Discord;
- Try our staking simulator here to estimate how much monthly cashflows you can get for a given DOUGH amount and your desired lock-up period.
I am personally excited to see this initiative boost the success of DOUGH staking and drive a coordinated community action. Ultimately, having more DOUGH staked is beneficial for all stakers as it attracts more committed governance members to the project, encourages active invokvement, and takes more DOUGH out of active circulation, while increasing its utility.