Why should you participate in Allbridge Staking?
We would like to take this opportunity to explain Allbridge Staking and highlight some of the benefits it brings to the ABR holders. Let us start with the most obvious one.
Benefit 1: Reduce the bridge fees
Have you ever had an opportunity to reduce commission in dApps?
At the moment, Allbridge offers a 0.3% fixed fee to transfer assets from one network to another. With the help of staking, you may significantly reduce the price that you pay for transferring assets.
We currently use an exponential system to reduce the fee. Basically, you can stake just a little for the fee to get reduced, but the more you need it to reduce, the more you have to stake.
Currently, at 0 stake, the fee is 0.3%, if you have as little as 10 xABR the fee is already at 0.2%, 40 xABR gives you 0.1% and for 0.05% fee, you currently need to have around 100 xABR on the staking account.
This all depends on your share of the staking pool, so the larger the pool is, the more you have to stake and vice versa. We’re also refining the numbers a bit based on the performance and users’ feedback, so this proportion can change in the future.
How Allbridge fee works: https://docs.allbridge.io/allbridge-overview/bridge-fee
Benefit 2: Earn rewards from Allbridge fees
Rewards are great, when organic!
Not only do stakers pay less for transferring assets, but they are also able to receive additional rewards in exchange for staking.
By design, 80% of the fees generated are used to buy ABR back, which is then placed into the staking pool as rewards on various chains. This means that as the bridge transfer volume increases, so do the staking rewards. Therefore, the project’s growth benefits the entire ecosystem.
Benefit 3: Take advantage of the lower TVL
Now you can hunt the best APR on several blockchains!
At the staking pool launch, its TVL is relatively small, which means that you can earn more rewards. If you consider yourself an APR hunter, you will be able to find the best Staking pool APR among all the chains and make the most out of staking rewards.
Benefit 4: Get extra incentivization as an early staker
10 weeks of Honeymoon for our early stakers! Because we appreciate you being with us…
Following the enormous success of the dynamic fee system launch, we decided to implement certain changes to the incentivization process. Originally, we planned to reward users over the course of two years. Following the feedback that we received from our community, we are going to shift things around.
Instead of two years, we are going to change the reward structure to benefit the early stakers most. In addition to the standard rewards from the bridge fees, we are going to launch a 10-weeks incentivization. Every day after launch, 1000 ABR will be issued daily to all chains over the course of one week (please note that it’s 1000 ABR total and not 1000 ABR per chain). In a week’s time, daily additional rewards will be reduced to 900 ABR and so on, until the marathon is fully complete.
The reason we decided to implement this change is to shift the balance in favor of the early stakers. We believe that the earliest of our supporters deserve to get the most benefits. This also means that additional incentivization will last 10 weeks instead of 2 years, but stakers are going to get the main bulk of rewards much faster.
After 10 weeks additional incentivization will be stopped, but stakers will continue to benefit from the bridge fees, which are going to increase progressively with larger transfer volumes.
- Recently, we completed our bridge contract migration. After the migration, we launched the dynamic fee system for Solana with more networks soon to come. Users may already reduce the fees that they pay for sending assets from Solana.
- At the moment, Solana staking has been already implemented. More pools are going to be added step-by-step. This means that users will be able to receive the rewards from each pool they stake in and reduce the fees that they pay across different networks at the same time.
- Following the Solana launch, we are going to add more chains, starting with Polygon. With more staking pools created, we are going to list ABR on more DEXes which is exciting news to all of the ABR holders.
We are always listening to your feedback, and we would be happy to hear your thoughts on the latest updates to incentivization.