Effect Staking
Table of contents
What is staking?
When you stake your tokens they are locked up in a smart contract for a period of time. In the EffectDAO you stake EFX and NFX tokens to participate in the governance. The reason that staking is necessary is it that it shows commitment (skin in the game) and others can trust that you act in the best interest of the project.
Tokens
Both network tokens can be staked but have a different role and unstake delay time:
| Token | Purpose | Unstake delay | Contract | Stake age |
|---|---|---|---|---|
| EFX | Utility | 5 days | efxstakepool | 1000 days |
| NFX | Governance | 15 days | efxstakepool | 0 days |
Staked EFX tokens have an additional property called stake AGE that makes their stake grow more valuable over time.
Before the release of the new Staking Protocol (on 09-11-2020) it was just possible to stake EFX. NFX tokens could only be claimed proportionaly to an EFX stake and its age. This is how NFX tokens came into existence for a period of about 2 years. After this date no new NFX tokens can ever be created.
How to stake
To stake your tokens you can use the Effect Dashboard. Login with you EOS account and make sure that it has some CPU, NET, and RAM available. Here you can stake your tokens using a simple interface.
Stake AGE
When you stake EFX tokens the system keeps track of how long they have been staked. This age is used as a multiplier on the power of your EFX stake. Your stake will get exponentially more powerful the longer it remains staked.
If you decide to add more tokens to an existing stake this will affect their stake age. The best way to look at this is that your newly added tokens have an age of 0 days. When they are added to the older tokens the total amount of the stake will increase while the overall age will decrease. Don’t worry though: adding to your stake will always increase its power.
EFX Power
The combination of staked EFX tokens and their age is called EFX Power. Every 200 days of stake age will double the EFX Power of your stake. The maximum age is capped at a 1000 days.
This table shows how EFX Power grows over time:
| Staked EFX | Stake AGE | EFX Power |
|---|---|---|
| 30,000 | 0 | 30,000 |
| 30,000 | 200 | 60,000 |
| 30,000 | 400 | 90,000 |
| 30,000 | 600 | 120,000 |
| 30,000 | 800 | 150,000 |
| 30,000 | 1000 | 180,000 |
| 30,000 | 1200 | 180,000 |
Unstaking
To receive your staked tokens back in your account you will first have to unstake them. This can be done for a portion or for all of your staked tokens. When the unstake is initiated that quantity is reduced from your stake and the unstake delay time is started. After this delay the tokens will be refunded to your wallet.
When you unstake EFX tokens you also loose their stake age. Of course the remaining staked tokens will keep their age but if you were to re-stake the unstaked portion they would dilute your age.
Refunding
Usually your unstaked tokens are automatically transferred back to your wallet after the unstake delay time. This is done with a deferred transaction on the EOS blockchain. It’s possible that this automated transaction fails, in which case you will have to execute the refund by hand. If this happened there will be a notification on the dashboard with a button to initiate the refund.