Ink Finance implements "stake to govern" mechanism, which requires that a DAO creator either chooses an existing staking pool or creates a new one to support the DAO's operation.
Before creating a new governance Staking Pool, there are a few things to consider:
The blockchain. The DAO and the staking contract can only be on the same blockchain where the governance tokens are minted.
Staking emission reward. There must be sufficient governance tokens in the DAO creator's wallet to be extracted to the staking contract.
Duration for the staking pool. For a new staking contract, the DAO creator must decide how long (years) the staking pool should last, and the total reward emission is used to cover the entire period.
Emission curve. The emission curve determines how the entire reward balance is emitted, on a daily basis, over the entire life of the staking pool. The default curve is daily linear emission.
Staking terms & weights. A DAO’s member can choose to lock up the stake for different periods, called Terms, and each Term carries a weight of receiving rewards. 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.