Staking & Governance
Disclaimer: Neither Plodding Isles, Dubloon Token nor the process of staking within the Plodding Isles ecosystem represents investment opportunities.
What is Staking?
Staking cryptocurrencies is a process that generally involves committing your crypto assets either to support a blockchain network & confirm transactions, or to support a decentralized exchange's liquidity. The complexity of staking can vary depending on the application. For a lot of traders and investors, knowing that staking is a way of earning rewards for committing certain cryptocurrencies is the key takeaway.
How does Staking work with Plodding Isles?
Staking is offered as a feature within the Plodding Isles ecosystem as a method of stabilizing Dubloon price on exchanges through increased liquidity. Staking is a service provided to the Plodding Isles ecosystem and holders of Dubloon token by individuals who stake (stakers). Through the service stakers provide, they can accrue staking rewards and the opportunity to vote on governance polls.
To Stake in Plodding Isles, the player visits an in-game Cartographer NPC, which exists both in Plodding Isles & Plodding Isles: Mini (This means you can stake your tokens in one game, and check your staking status in the other.) The Cartographer will help you scribe out a map, allowing you to bury (stake) your Dubloons. From a technical standpoint, this means surrendering an amount of Dubloon tokens to a staking Smart Contract.
The staking process requires the user to transfer an equal amount of Dubloon Token and Matic (Polygon Blockchain's native blockchain token) into Liquidity Tokens, or "LP Tokens" (this service will be provided by our primary DEX, which is to be confirmed) which will be These tokens are then taken to the in-game Cartographer to be staked. There is no fee for staking LP tokens.
To reward users for locking up their tokens into liquidity, the Staking Contract will provide users with a portion of the fees earned in Dubloon from all Plodding Isles applications. As per the Fee Distribution, 60% of all fees generated internally on Plodding Isles applications go into the Liquidity Pool staking smart contract and are distributed amongst Stakers (individuals who stake tokens), proportional to the number of Dubloon Tokens they stake. This allows for strengthened Dubloon Token liquidity on our primary decentralized exchange.
An important note about LP Tokens: LP Tokens are generated by a third party DEX. Plodding Isles does not issue or distribute LP tokens.
Claiming Fees
To claim Dubloon rewards accrued from staking, users can simply re-visit the in-game Cartographer NPC and claim their rewards. The user can also completely unstake (end staking) at any point and receive their LP tokens back, plus any Dubloon rewards accrued from staking.
Each day, a Liquidity Provider (staker) will be able to redeem their portion of rewards from the pool, based on what percentage of the DUB/MATIC pool they own.
Both claiming rewards and unstaking incur a withdrawal fee as a percentage of Dubloon Token rewards accrued. The fee rate is dependent on the length of time that has passed since the user staked their LP tokens. Any LP Token withdrawals, deposits or claimed rewards reset this timer to zero. All fees generated through Staking enter our Fee Distribution pool, most of which goes back into staking rewards for our users.
Dubloon Token rewards claimed through staking are received directly into the user's cryptoasset wallet, not the in-game Dubloon balance.
0.5%
25 Epochs
1.5%
10 Epochs
3%
5 Epochs
5%
3 Epochs
10%
7 Days
25%
5 Days
35%
3 Days
50%
24 Hours
75%
1 Hour
100%
Same Block
An Epoch is defined as a period of time and linked to the block speed of the Polygon Blockchain Network. One Epoch is roughly one week, assuming a 2 second block speed on the polygon network. The lengths of time in Fee Percentage tiers 0.5%, 1.5%, 3% and 5% are subject to change as Polygon Epoch lengths change.
Locking Rewards
When the user stakes their LP tokens, they have the option to lock them for a set period of time, or simply choose "No Lock" which means that they can withdraw their LP tokens at any time they choose. By locking LP tokens, the user acknowledges that they cannot remove their LP tokens from the Staking Smart Contract for any reason, and their tokens are locked for the period of time they agree to. Locking LP tokens for periods of time results in greater staking rewards in Dubloon.
2 Years
80%
1 Year
50%
9 Months
35%
6 Months
30%
4 Months
25%
3 Months
20%
2 Months
15%
1 Month
10%
2 Weeks
5%
1 Week
3%
No Lock
No Bonus
Example Scenario
The user stakes their LP tokens for a locked period of 2 weeks. Their LP tokens are then unlocked after a 2 week period, though they wish to leave them in the Staking Smart Contract to keep receiving rewards. They then redeem 100% of the Dubloon rewards after a 10 Epoch period.
Over the initial 2 week lock period:
100 Dubloon accrued (+5% Lockup Bonus)
After the initial 2 week lock period:
100 Dubloon accrued
After a 10 Epoch period:
205 Dubloon accrued: 201.925 Dubloon redeemed (cashed out) after 1.5% 10 Epoch Claiming Fee applied.
The Staking Smart Contract is decentralized and autonomous, and does not have any authority to manipulate or control the Staker's assets. Similarly, Plodding Isles cannot manipulate or control the Staker's assets, and Plodding Isles has no control over the operation of the Smart Contract. In that sense, the Staking Smart Contract is more operational than managerial. Since the user who staked the funds is providing a service to the Plodding Isles ecosystem, this means that the returns are not based on the efforts of others.
Though there are withdrawal fees incurred on staking rewards when they are withdrawn, Plodding Isles' activities and operations are not funded through staking itself, and at no point does the staker ever incur a fee for the process of staking their LP tokens, and at no point are LP tokens ever taken as a fee.
Benefits of Staking
Earn more Dubloon Tokens by locking your existing Dubloon into the staking contract.
Support exchange liquidity in order to reduce Dubloon price volatility.
Have a seat at the table on Governance polls.
Risks
You may have heard the term "Impermanent Loss" used when describing traditional staking. Impermanent loss (IL) is the risk that liquidity providers (Stakers) take in exchange for fees they earn in liquidity pools.
Impermanent Loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit. Source: Binance
So why do liquidity providers still provide liquidity if they’re exposed to potential losses? Impermanent Loss can be counteracted by the rewards received from platform fees.
It's important that you familiarize yourself with the risks involved in staking and liquidity pools before staking your Dubloon Tokens and Matic.
Governance
Anyone who has Tokens staked within the Plodding Isles ecosystem will be able to vote on community governance polls that help shape the landscape of Plodding Isles.
Governance poll topics may include but are not limited to:
In-Game Events
Prizes & Rewards
General Ecosystem Direction
Governance power will correspond proportionally to the number of tokens an individual has staked, decreasing logarithmically as the number increases. This is to give a fair voice to everyone, while still acknowledging the input of individuals who have staked smaller amounts.
Neither holding Dubloon Token or any LP Tokens nor staking Dubloon Token or any LP Tokens entitles the holder(s)/staker(s) to any ownership, voting rights, or control of Isles Web LLP. Governance polls are held to offer direction only, and are held at the discretion of Plodding Isles/Isles Web LLP. The outcomes of governance polls are not legally binding and Isles Web LLP is not obliged to fulfill or execute the outcome of governance polls.
Dubloon LP Tokens are not tradeable on capital markets, nor will ever be tradeable on capital markets.
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