Staking APY Adjustment Proposal

BTTC DAO Ideas
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Background

According to the BTTC chain’s token deflationary economic model, the reduction in total token output will significantly enhance the scarcity and long-term value of BTT. However, this change also requires an optimization of the current reward mechanism to ensure alignment with the updated economic model and to support the network’s sustainable development.

Core Proposal Content

Staking APY Adjustment

  1. Necessary Adjustment Due to Reduced Token Output
    With the reduction in total token output on the BTTC 2.0 network, the total amount of on-chain token rewards will also decrease. The current staking APY no longer aligns with the updated token economic model, making this adjustment necessary and reasonable.

  2. Enhancing Decentralization and Security
    Following the BTTC 2.0 upgrade, more validator nodes are expected to join the network and take on validator roles. The increase in the number of nodes will significantly distribute the reward pool, enhancing the network’s decentralization and security. Additionally, it will provide more validators with fair participation opportunities. After reducing the APY, staking rewards will be distributed more reasonably, ensuring the long-term stability of the network.

Proposal Goals

  1. Optimize the Reward Mechanism
    Ensure that reward distribution aligns with the updated token economic model after the reduction in token output, enhancing the long-term value of BTT.

  2. Promote Decentralization
    Attract more nodes to join the network, further improving the network’s decentralization and security, and providing stronger resilience for the ecosystem.

  3. Facilitate Sustainable Network Development
    Adjusting APY to better allocate resources and support the healthy operation of the token economic model, laying a solid foundation for the long-term development of the ecosystem.

Expected Impact

  • Impact on Users
    After the APY adjustment, users’ staking rewards will decrease. However, with the enhanced scarcity and long-term value of the token, users’ overall asset value will become more sustainable.
  • Impact on Validator Nodes
    A more reasonable reward distribution mechanism will attract more validator nodes to join, further strengthening the network’s security and stability.
  • Impact on the Ecosystem
    The APY adjustment will optimize resource allocation, support the healthy operation of the token economic model, and provide a stronger foundation for the ecosystem’s long-term development.
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How long can we expect to see noticeable effects after implementing this proposal?

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The effect can be seen after the annualized return is adjusted. The user’s staking income will be reduced, but as the scarcity and long-term value of tokens increase, the overall asset value of users will be more sustainable.

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Why is it necessary to adjust the staking APY?

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The adjustment is necessary because the total token output on the BTTC 2.0 network will decrease, resulting in reduced on-chain token rewards. The current APY no longer aligns with the updated token economic model. Adjusting the APY ensures that the reward mechanism is optimized to match the reduced token supply while supporting the network’s long-term sustainability.

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How does this proposal contribute to the ecosystem’s long-term development?

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The proposal ensures that the reward mechanism aligns with the updated token economic model, optimizing resource allocation. It lays the foundation for sustainable token economics, promotes decentralization, and strengthens the network’s resilience, all of which are crucial for the ecosystem’s long-term growth.

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How will the APY adjustment impact users?

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Users’ staking rewards will decrease after the APY adjustment. However, the reduced total token output will enhance the scarcity and long-term value of BTT, which means users’ overall asset value will be more sustainable in the long run.

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How does the APY adjustment benefit the network?

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The adjustment will result in a more reasonable distribution of rewards, which will attract more validator nodes to join the network. This will enhance the network’s decentralization and security while ensuring fair participation opportunities for all validators.