Staking plays an important role within the DappRadar ecosystem, serving as the foundation for numerous product and tokenomics elements. One of the primary applications of staking is its use as a "checkout" method for DappRadar PRO membership. By staking the required amount of tokens, users unlock the PRO membership. This gives them access to advanced features and various benefits across the DappRadar ecosystem.
The importance of staking for the RADAR ecosystem
Without forcing community members to pay for a membership, the staking system does offer benefits to the overall tokenomics of RADAR. Every PRO member stakes at least 30,000 RADAR. From a tokenomics perspective, staking acts as a sink, reducing the circulating supply of RADAR tokens.
In addition, thanks to a 30-day cooldown on the withdrawals, DappRadar DAO has better visibility and control over the circulating supply of RADAR in the market. The specific parameters for this cooldown period and minimum required amounts are determined by the DAO. By incorporating these features, the Staking program further solidifies its importance within the DappRadar ecosystem and tokenomics model.
Additionally, staking offers RADAR rewards with an Annual Percentage Rate (APR) determined by the DAO, but aligned with a healthy tokenomics model. While the initial APR may be higher to encourage participation, it will gradually decrease over time. The aim is to attract users who are genuinely interested in using the DappRadar product and becoming part of our community, rather than speculators solely seeking high rewards. This approach helps to foster a dedicated and engaged user base for the long-term success of the DappRadar ecosystem.
Another important aspect of staking is its connection to Boosting Power, which is directly proportional to the amount staked. Different actors within the DappRadar ecosystem can utilize Boosting Power, and we will explore this in greater detail later.