Staking $PDT
Overview
$PDT staking is a novel model that allows $PDT holders to claim rewards paid in blue-chip Web3 game tokens. Explore our Staking page, or check out the staking contract directly.
How to Stake
You can stake directly from our Staking page. To learn more, watch this video
Benefits of Staking
Our largest investment is in game assets for Parallel — the highly anticipated play-to-earn (P2E) game that influenced our inception. Parallel players will compete for the PRIME token, which recently launched and is being rewarded to Parallel NFT collectors before the game launches.
At ParagonsDAO, we’re entitled to the largest claim of PRIME tokens (initially, almost 1% of the total supply and more in the future). Our staking model is a key way for us to directly share some of these rewards back to you — allowing investors to collect direct passive income in our top asset holding (and in the future, other metaverse economies we’re involved with) without inflating $PDT.
Epoch Rewards
Our staking model is built around reward epochs — periods of time in which ParagonsDAO can earn PRIME to fund the staking reward pools.
Each epoch, you earn a share of the total reward pool based on your amount of $PDT staked, time staked in that epoch, and multipliers (see below). At the end of an epoch, the contract calculates how these variables impact your share of the pool (compared to everyone else), and allows you to claim your entitlement. You’ll need to remain staked until the end of an epoch to earn a share of its rewards.
We intend to fund each epoch’s staking reward pools with 30% of the total PRIME we’ve claimed by the end of the previous epoch.
💡 While several future reward epochs will partially rely on our initial claim of PRIME rewards from caching and Prime Events, we’ll continue to fund staking rewards through ongoing PRIME earnings through Paraset and Catalyst Drive caching, and capture a significant portion of Echelon’s large P2E Pool (which will be continuously replenished) through our P2E model.
Multipliers
To reward the most dedicated $PDT holders, we use a time-weighted multiplier. As your multiplier grows, so does your share of the total staking reward pool and therefore, the PRIME you’re eligible to claim at the end of a reward epoch.
When you stake, your multiplier starts at 1x and begins growing linearly. Every six months, the multiplier increases by 1x (that’s about 0.042x per week or 0.167x per month).
We apply a new multiplier to each staking event — an amount of $PDT staked today will have a greater multiplier than a future amount staked. Unstaking removes all your staked $PDT from the contract and resets your multiplier.
💡If you foresee yourself unstaking a portion of your staked balance and don’t want to reset your multiplier, you may consider staking that portion from another wallet.
Example
You have 10,000 $PDT and decide to stake all of it today. Every 3 months, you buy and stake another 10,000 $PDT. Your total staking multiplier reflects the average current multiplier for the tokens from each staking event.
If you decide to unstake your $PDT, you’d lose the benefit of the multiplier you’ve built (and therefore the weighting of your $PDT).
Contract audits
FAQ
Has the staking contract been audited?
Yes. The contract went through two independent audits from Certik and Peckshield, both of which found no significant issues with the contract. You can find the Certik audit here, and the Peckshield audit here.
Can I still use my $PDT for voting in ParagonsDAO’s governance if it’s staked?
Yes. Snapshot (our voting platform) will recognize if you’ve staked $PDT and allow you to vote with your total staked and unstaked $PDT.
What is a reward epoch?
A reward epoch is a period of time in which ParagonsDAO can earn PRIME to fund the staking reward pools and pay rewards to stakers. You can only claim PRIME rewards once an epoch ends, which is when the contract calculates how your time staked during the epoch and multipliers impact your claim. You’ll need to remain staked until the end of an epoch to earn a share of its rewards.
Do I need to be staked for the entire epoch to earn PRIME rewards?
You can begin staking after an epoch begins, and the staking contract will calculate how long you were staked during that epoch and allocate rewards accordingly. You need to remain staked until the end of an epoch to earn a share of its rewards.
Are all reward epochs the same length?
Starting with Epoch 1, each epoch is designed to be 30 days long, allowing you to claim rewards at short, regular intervals.
Can I claim PRIME rewards any time?
You can only claim PRIME rewards for an epoch once ends. This is when the contract can finalize how your time staked during the epoch and multipliers impact your claim, compared to everyone else.
After an epoch ends, you can claim rewards for that epoch (any any prior epochs) at any time.
How does the multiplier work?
To reward the most dedicated $PDT holders, our staking contract uses a time-weighted multiplier. As your multiplier grows, so does your share of the staking reward pool and therefore, the PRIME you’re eligible to claim at the end of a reward epoch.
The staking contract applies a new multiplier to each staking event—an amount of $PDT staked today will have a greater multiplier than a future amount staked. Unstaking removed all of your staked $PDT from the contract, and resets your multiplier.
How fast does the multiplier increase?
When you stake, your multiplier starts at 1x and begins growing linearly. Every six months, the multiplier increases by 1x — that’s linear growth of about 0.042x per week or 0.167x per month.
What happens to my multiplier when I unstake?
Unstaking removes all your staked $PDT from the contract and resets your multiplier. If you foresee yourself unstaking a portion of your $PDT in the future and don’t want to impact the multiplier on your full balance, you may consider staking a portion from another wallet.
Does ParagonsDAO have enough PRIME to keep paying attractive staking rewards?
For Year 1 of staking (Epochs 1-12), we've designed a sustainable model intended to fund ongoing, attractive staking rewards.
30% of our game token revenues (currently, only PRIME) fund our staking rewards pool, and we will continue earning PRIME through sink throughput and gameplay revenue (by lending our cards).
We're funding the first year of staking rewards in a way that offsets the risks if these expected revenues are delayed.
When will the PRIME reward for early $PDT holders be paid?
In March 2022, $PDT holders voted to direct 7,680 PRIME to early supporters who held through a February 11 snapshot. In February 2023, a proposal was raised (and successfully voted through) to redirect these rewards to the overlap of wallets who were 1) holding through that snapshot and 2) staking as of February 14, 2023.
This reward will be airdropped to eligible wallets by mid-March 2023.
Can vesting vouchers/unvested $PDT be staked?
ParagonsDAO founders were awarded $PDT vouchers that linearly vest over a 2-year period.
Unvested $PDT from these vouchers cannot be staked. Any vested $PDT from these vouchers can be claimed and then staked.