State of the Reactor: accTOKE - November 29, 2022

  • accTOKE is a new mechanism that allows TOKE holders to lock their tokens for two, three, or four Cycles in order to receive WETH rewards. Rewards are boosted with increased lock duration.
  • An article with more details regarding accTOKE is planned for release later today.
  • accTOKE launch is expected tomorrow. Users will have a full Cycle to migrate or stake their TOKE holdings. The accTOKE rewards Cycle will begin next Wednesday (December 7).
  • Significant reward logic improvements will be made alongside the accTOKE launch in the upcoming Cycle.
  • The existing reward logic balances emissions proportionally to Liquidity Directors and Liquidity Providers. This did not take into account the efficiency of a particular Reactor, so unprofitable Reactors received an unfair share of rewards. The new logic takes performance into account, and balances efficient allocation of votes with performance of a Reactor. It also properly incentivizes Liquidity Directors, who have a desire for directing liquidity beyond rewards.
  • A four-week rolling average of Reactor performance will be taken into account for the rewards logic. More info will be available in the Gitbook updates.
  • accTOKE stakers do not direct liquidity. This balances the incentives between long term TOKE holders and Liquidity Directors who have a desire for governance power.
  • Rewards distributed to accTOKE stakers originate from protocol owned asset (POA) deployments.
  • There is an initial cap on accTOKE staking, beginning with one million TOKE for the first Cycle and increasing by one million per Cycle for the following six Cycles. The cap will be lifted on Cycle 247.
  • The rewards will begin at 20% of POA rewards during the first Cycle, and will be incremented by 5% up to a terminal rate of 50%.
  • accTOKE will act as a sink for circulating supply, allowing the Tokemak protocol to reduce overall emissions.
  • The time duration of locking applies to all TOKE that is deposited. Staking additional TOKE before the expiration of the lock will extend the locking period for existing accTOKE in addition to the newly locked tokens.
  • Rewards will be claimable at the end of each Cycle, not just at the end of the locking period.
  • WETH rewards will be able to be claimed and unwrapped within the Tokemak UI.
  • Emission improvements and updated mechanics will allow the protocol to continue making progress towards achieving zero emissions for volatile deployments.
  • Liquidity Directors who currently have TOKE deposited into the system will be able to easily migrate to accTOKE through the updated UI.
  • There is no ERC20 representation of locked TOKE – e.g., no tAsset.
  • The Halborn audit for the new contracts is available on Github and will be published soon, along with the upcoming article.
  • accTOKE is a major first step towards the large Tokemak v2 overhaul. Many improvements to the protocol will be coming over the next few months!
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