Extension of staking incentives

5d ago
6 Comments

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:

  • Adding extra incentives beyond 25 weeks
  • A competitive APY for our non inflationary HDX token (ie how much HDX to supply as incentives)
  • Length of time to extend incentives
  • Any other points you want to make on this topic?

Stay Hydrated, not liquidated…

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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...)

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Extension of another 6 months with a lower amount might be fine imo.

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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.)

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According to stats page:

  • Circ Supply: 5 776 450 224
  • % Staking: 32.43%
  • HDX staking: 1 873 302 808
  • Reward: 50 000 000 (if we did 25% of previous)
  • Length: 6 months (so need to times by 2 to get APY)
  • Percent APY: ((Reward/HDX staking)x100)xLength = 5.33%

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?

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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.

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