Most of the pylon gateway users like me who staked MINE is not staked to get more MINE token but doing it with the expectation of getting to invest in the new projects launched in the platform.
So if we can market MINE staking similar to yield redirection.
“Stake Mine and redirect yield to invest in new projects”
Let me explain the issue with the current incentive model and steps to fix it.
In the current form, the fee/commission generated by the protocol is used to buy back MINE from the open market to distribute among the long-term MINE stakers. But the actual benefit of this incentive is not the MINE stakers we are just incentivizing LP providers and Yield Optimizers to get a better market to sell their MINE.
Fee generated from the protocols launched in pylon gateway can be used to invest in the Pool itself (18, 12 or 6 months) up to the pylon governance decision.
The token acquired from this money can then be distributed among the Stakers with the locking period similar to the pool chosen by the governance.
-At end of the pool period governance can decide what to do with that money either put it in Pylon Dao treasury or use it to buy back MINE from the market to distribute or burn.
Let’s say TWD project has 50mil TVL locked which is earning 50K per week from anchor yield out of which 10K is the fee for the pylon protocol.
Now use that 10K to invest in the TWD 18months pool each week, and distribute among the MINE stakers for that week (token will be locked the same as the Pool vesting duration).
Stakers will be eligible only if they staked at least a week so that people can’t game the system just by staking at the very last moment to be eligible.
Once the 18months period ended lets assume the TWD pool got around 2mil UST(accumulated from the weekly deposits) which then can be decided if need to be used to buy back MINE to distribute or burn or to deposit in MINE treasury to give a soft floor to MINE.
For the long term Mine stakers it’s a lucrative proposition as just by staking. The generated yield is redirected to invest in all the new platforms launching in the future without forcing the new projects to change/skew the rule to give an advantage to MINE stakers.
For new projects launching in the platform, they know the commission they are paying to the platform is actually being used to invest in the same project with a long term view not to just dump the token after launch.
Same can be applied to Pylon Scout as well, the commission pylon will generate from the event can be used to buy the token whatever the final sell price decided at the end of the Scout event. which will be distributed among the MINE stakers.
Note : The above steps will earn extra project tokens along with the regular Airdrop that the new Projects allocated toward the Mine stakers.
With the above changes, we can fix the incentive model for MINE staking once for all.
People will be incentivized to stake more MINE(current perception is staking >100K mine is not useful) as more mine staked more tokens can be accumulated from future project launch.
People will be incentivized to stake and forget as they are sure they will be getting some allocation from the future projects without doing KYC or fighting with bots.
Projects will be more comfortable as Pylon is not demanding any favourable treatment for MINE stakers as MINE stakers as a whole participate in the process decided by the Project itself.