Fellow Hydrators
I would like to raise a discussion around extra staking incentives. To kick off 2025 we celebrated by 25 weeks of boosted staking rewards https://hydration.subsquare.io/referenda/7 . Chewing glass was the phrase used as an expression by Kubo to describe the previous two years of supporting Hydration during the first AMA earlier in the year on X. The 25 weeks of celebration was a great way to give back to the early supporters and also help with the first 6 months on 2025 that have been to say lightly, very bumpy. I know that as one of these early supporters chewing glass I have appreciated this extra incentive to be invested in governance and active supporting in the community.
As the 25 weeks come to an end I think we should discuss moving forward with extra incentives to keep Hydration being the most active ecosystem communities with governance and making sure our staking rewards for our non inflationary HDX token are high enough to keep our momentum going.
Personally I think the 25 weeks were very very generous and the same generosity is not really needed moving forward, especially as we see the flywheel effect of increased TVL having an impact on the HDX token.
What is your opinions on:
Stay Hydrated, not liquidated…
The empowerment of hdx holders, including but not limited to staking rewards, should be long-term, so in terms of time, I support continuing for 6 months.
The specific amount depends on the total amount of hdx that can be distributed and the overall plan (such as improving hdx liquidity and preparing for hdx to enter the collateral team, etc.)
According to stats page:
So for every 50million HDX put in the extra incentives pot would be 5.33% per year.
What are the thoughts around doing 25% of previous incentives?
Personally, I would love to take the privilege to receive more HDX as rewards for my years of holding and enthusiasm for the protocol. Stay pushing, stay hydrated.
For the second round of staking incentives, 25% sounds good. I think in the future we should create statistical analyses to determine the proportions of how much funding should be allocated for buybacks from the protocol's revenue and how many tokens obtained from buybacks should be allocated to increase the staking pool.
IF HDX STAKE A MILLION HYDRIKS, THEN I AM ONE OF THEM. IF THE HDX STAKE 10 HYDRIKS, THEN I AM ONE OF THEM. IF HDX STAKES ONE HYDRIK, THEN IT'S ME. IF NO ONE STAKE HDX, THAT MEANS I AM NO LONGER ON EARTH. IF HYDRADAO IS AGAINST STAKE, I AM AGAINST HYDRADAO
For next set of incentives we need to think it through. Ideally the HDX earned through revenue should be distributed in the following ways:
I am in agreement with others that we should continue some form of subsidy for HDX staking but on a smaller scale that the last 25 weeks - especially now that all supply is vested, and there are no ongoing rewards distribution in HDX. Lower APR on a fixed supply asset is more attractive than high APR on an inflationary supply.
So far in 2025, Hydration DAO has accumulated 106,262,383 HDX from completed protocol buybacks using H2O.
I would propose that we distribute 50% of these HDX to HDX stakers over a period of 6 months, based on current amount of HDX staked this would give a boost to the current APR of ~5.65%
We should have a framework for HDX attraction plans and then iterate on this framework. Staking rewards should be part of this framework.
Although the scale and earning power of hydration are key. But this is not exactly the same thing as token economics.
I think the token economics of our document is just a start. It needs to be iterated.
My name is Crane and I am in favor of this!
Basically distributing the buybacked HDX to the community.
I would take the same generosity though, to make the shown APR a reality (6month + 6month = 1 year, so annualized...)