Staking

Staking is essential to AlexaDAO, designed to encourage long-term commitment and protocol stability. By applying game theory principles, AlexaDAO aligns user incentives, ensuring that staking is consistently advantageous.

Staking: A Strategic Framework

Definition of Staking: Staking serves as the main value generation mechanism within AlexaDAO. Participants can stake their $ALXA tokens through the dApp to earn rebase rewards.

This approach is passive and focuses on long-term gains. As staked tokens increase, the cost basis diminishes. Even if the market price of $ALXA falls below the initial purchase price, a prolonged staking period can yield profits as the growth in staked tokens compensates for price decreases.

The primary benefit for stakers arises from supply expansion. The protocol generates new $ALXA tokens from the Treasury, with most allocated to stakers through auto-compounding. If the increase in token balance surpasses potential price declines due to inflation, stakers stand to profit.

Adaptive Staking Mechanism

AlexaDAO features a flexible staking system, allowing users to stake, claim, or compound their $ALXA tokens at their convenience.

Claiming Rewards: Users can claim 100% of their accrued rewards immediately but must re-lock their stake for one epoch to continue earning.

Compounding: Compounding allows users to receive their full rewards plus an additional 10% bonus, enhancing returns.

Transaction Fees: A nominal fee of 1.5% applies to staking and unstaking transactions, contributing to the ecosystem's long-term sustainability.