ChainGuardians has always focused on collaborating and supporting quality projects in the crypto space. CG has a history of providing Validator nodes for multiple networks. It has run nodes for avax, elrond, eth and was among the first projects to provide one for Polygon. These nodes secure and maintain networks and are rewarded for doing so.
There has been recent agreement on how to use these rewards, which have been untouched up to this point. The current amount of Polygon rewards accumulated by CG stands at 153k MATIC. The first phase of the program begins with selling 50k MATIC for CGG.
The CGG purchased will be locked in a wallet controlled by the DAO. The amount of CGG locked will be matched with CGG from the DAO Treasury. These matched Ecosystem funds will be used as the incentive for Guardian Validators, fueling months worth of staking rewards.
By staking as a Guardian Validator you will help in stabilizing our network and by default secure other networks that CG validates. To receive Guardian Validator rewards users would be required to stake a minimum of 50k CGG and must participate in one 3 DAO votes per staking period.
The staking pool would be active for 3 months. Users would then need to unstake and a new pool would be deployed. Users must vote on atleast 3 proposals to be whitelisted for the next staking period. This would average out to 1 proposal a month. There is also the capability to set the min and max amount a user can stake.
Rewards distribution would be per block for a period of 3 months. No auto-compounding. The staking will take place on the Polygon network and will be located on the Staking section of the ChainGuardian site.
Guardian Validator rewards will differ from the Community Fund and future CGC conversion rewards. This will have a multipronged effect:
- Hodlers and buyers of CGG aiming to stake will increase market activity.
- Users stake CGG securing and stabilizing the ecosystem.
- Polygon rewards used to buy CGG creating positive inflows.
- Locking CGG from Polygon rewards adds to stability and support of market.
- Ecosystem funds used for staking rewards provide incentive to current and new users.
The Guardian Validator program would help offset current reward incentives in which CGG is sold/swapped for stable. It should also help increase DAO activity by requiring 3 votes per staking period.
- Though CG has decided to put these rewards to use, a portion must go towards the maintenance/dev, admin, smart contract, etc for implementing a rewards structure.
- If this initial phase shows success further unlocking and utilization of the funds can be voted on or possibly even burned.
- An extended date after approval of the proposal will give users enough time to horde some CGG and not miss out on initial rewards.