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Staking - For the Grinders
Top Fi DAO's key value accrual approach is staking. $TOP token holders stake their tokens on the Top Fi DAO Dapp to win rebase payouts. The rebase incentives are derived from the profits of mint sales and might vary depending on the quantity of Top Fi staked in the protocol and the reward rate determined by monetary policy.
Staking is a long-term, passive approach. The increase in your $TOP stake translates into a constantly falling cost basis that eventually converges on zero. This means that even if the market price of $TOP falls below your initial purchase price, the increase in your staked $TOP balance should eventually outpace the price fall given a long enough staking period.
You lock $TOP and earn an equivalent amount of $wDREAM when you stake. At the conclusion of each epoch, your $wDREAM balance is automatically rebased. $wDREAM is portable and hence compatible with various DeFi protocols.
You burn $wDREAM and gain an equivalent amount of $TOP tokens when you unstake. Unstaking implies that the user will miss out on the next rebase payout. It should be noted that the forfeited reward only applies to the unstaked amount; any remaining staked $wDREAM will continue to collect rebase benefits.
Staking requires stakers to stake for at least two epochs before earning rewards. This staking period is considered a warm up. If a staker tries to unstake their position before the expiration of these two epochs, they will forfeit their rewards. A warm up period is required every time a new stake is made.
Last modified 1mo ago