Staking will be used as a tool to incentivise holders to add value to the Degen Islands ecosystem. While others merely employ staking to reduce circulating supply to raise the price, the Degen Islands’ protocol requires staking to prove a user’s stake in the game and enable critical financial earning via the governance token. A portion of the total supply of $DGOLD will be used for staking payouts.
Holders of $DGOLD can earn more $DGOLD by simply staking their $DGOLD on their ISLANDs and earn passive income. Their rewards will be based on the amount that they have staked. The longer $DGOLD holders stake their token, the higher the reward they’ll receive.
The rewards are also multiplied based on the amount of ISLAND that they own. Users will be able to choose their staking duration between 1,3,6 and 12 months total. Removing a stake before the agreed time period expires will result in a penalty reflecting the length of time they were staked.
Staking rewards will be allocated from the Liquidity Mining allocation of the $DGOLD. 300,000,00 tokens is allocated for the staking rewards for currency stakers.
The total distribution is decreasing over the 10 years