DAO Staking and Voting Incentives

DAO Staking Incentive Plan

By setting up a rewards pool, SFT DAO will encourage members to participate actively in staking and voting, increasing governance engagement and activity. Below is the planned staking and voting incentive plan (details to be announced):

• Establishing the Reward Pool: SFT DAO will pre-allocate a reward pool, containing governance tokens or rSPD credits. The reward pool can draw from community funds, DePIN revenues, or donations.

• Staking Requirements: Members participating in voting need to stake a certain amount of tokens or credits to qualify for voting. Staking not only increases voting weight but also prevents misuse of the voting system.

• Voting Reward Distribution: After voting concludes, rewards from the pool are proportionally distributed to voting participants. Rewards can be allocated based on:

Voting Weight: Rewards distributed based on the amount of staked tokens or credits; the more staked, the greater the reward.

Voting Activity: Members receive additional rewards for consistent and frequent voting, encouraging ongoing governance participation.

Proposal Outcome Alignment: A mechanism could allocate additional rewards to those supporting successfully passed proposals, promoting rational judgment and active contribution.

• Long-term Staking Rewards: To encourage long-term governance engagement, SFT DAO will establish additional rewards, such as extra token rewards or weighted voting rights for members who stake over extended periods.

• Periodic Reward Distribution: Rewards can be distributed monthly or quarterly, ensuring the sustainability of the reward pool. Periodic distribution also allows more members to participate, continuously attracting new participants to staking and voting.

• Transparent Reward Distribution Mechanism: To build community trust, all rewards distribution will be publicly recorded on the blockchain and executed through smart contracts to ensure fairness and transparency.

Through these incentive mechanisms, SFT DAO can effectively increase community engagement, bringing more members into the project’s development and achieving robust decentralized governance.