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On the Staking Page $MIN holders have the Option to stake their $MIN in order to receive $ADA rewards generated from the Fee Switch. Every time someone swaps on Minswap, there is a 0.3% Fee, of which 0.05% is the Fee Switch. The $ADA generated through it is redirected towards $MIN Stakers. Every month $ADA rewards for the entire month are accumulated and then distributed the month after. This is similar to how $ADA rewards are distributed to LPs currently.
$MIN stakers essentially “soft-lock” their $MIN for a certain amount of time. It’s a “soft-lock” in that stakers may unlock their $MIN at any time, however doing so early means they forfeit their accrued rewards. Forfeited rewards from early unstaking are collected monthly and distributed to the $MIN stakers afterwards.
In the first iteration of $MIN Staking, the boosts will work the following way:
- 1.Staking $MIN for 1 month gives an unboosted $ADA APR
- 2.Staking $MIN for 3 months — gives a 3x boosted $ADA APR
- 3.Staking $MIN for 6 months — gives a 6x boosted $ADA APR
- 4.Staking $MIN for 9 months — gives a 9x boosted $ADA APR
Once the staking period is over, the $MIN is effectively unstaked, and you may claim rewards anytime. Remember to re-stake your $MIN if you want to continue getting real yield in $ADA!
In its current iteration, $MIN Stakers will purely have the following 2 benefits:
- $ADA Real Yield coming directly from Trading Fees the platform generates.
- Governance say as any $MIN Holder would have, with the same voting power.