Set up New Staking Engine

The "stake to govern" mechanism requires that a typical main DAO's creator create a Staking Engine to support the entire ecosystem's governance. Sub DAOs will share this engine.

Before creating a new Staking Engine, there are a few things to consider:

The governance token. They must be minted by the ecosystem on the local blockchain. Ink Finance does NOT mint these tokens because they are the most critical resource of an organization.

The staking reward emission. There must be sufficient governance tokens in the DAO creator's wallet to be extracted to the Staking Engine. Make sure that using these tokens as govenrnace reward is in line with your overall tokenomics.

Life duration for staking. For a new Staking Engine, the DAO creator must decide how long (years) the staking program should last (the total staking reward emission is used to cover the entire period).

Emission curve. The emission curve determines how the entire staking reward pool is emitted on a daily basis, over the entire life during of the staking program. The default curve is daily linear emission.

Staking terms & weights. A DAO’s member can choose to lock up the staked position for different periods (called Terms), and each Term carries a weight of receiving emission rewards and governance rights. The DAO creator can determine the length of each Term (days, weeks, months, or years) and their corresponding weights. The default setting has only one Term, which is 1-Day.

Penalty of early termination. A staker can choose to early terminate a Termed staking position, which will cause a a penalty that is the forfeit of the accrued rewards and a deduction from the deposited principal.

Inputs to the above parameters will be presented in a separate window during the DAO creation process.

Screenshot of new staking creation screen

When the DAO is successfully created, so will the Staking Engine. Creators of the sub DAOs in your ecosystem who want to share this Staking Engine can find it when they create the sub DAOs.

Screenshot of selecting existing staking