OVER staking smart contracts had incredible success with over 5 Mln OVR Tokens locked between 3 and 12 months. Such adoption demonstrates strong commitment and trust in the project from the community. Very few projects can drive such a long-term commitment from token holders. Staking is a way to reduce token velocity, hence sustaining the token value, yet it is also well understood that if not managed correctly, in the long run, such a “liquidity renting” can have a negative impact on price because of the selling pressure generated by rewards. Considering the OVR Token circulation volume, the current staking rewards are sustainable, yet to avoid an uncontrolled increase in deposits, new staking and staking extension will be paused for OVER staking 2.0. Users that have already staked will be able to keep generating their staking rewards according to their lockup Tier.
New staking smart contracts (Staking 3.0) will be deployed on Polygon. Besides the reduced gas fees that allow participation also to small holders, the main differences are the following:
- It will be possible to withdraw the rewards during the capital lockup period.
- There will be a global staking amount limit for each lockup tier
- Staking rewards will only be used for primary market sales and platform costs such as hosting fees.
- It will be possible to vote on the (to be deployed) governance DAO on Polygon with staked tokens.
This new configuration will avoid direct selling pressure generated by staking rewards while at the same time enabling free usage of the OVER platform to users that decide to have a stake in it. Staking 3.0 smart contracts are currently under security audit and will be released in the next weeks. Staking 3.0 smart contracts will also enable accumulating points to participate in reserved Lands distribution as Staking 2.0.