Orderly Community Proposal #2 proposes to use up to 60% of net transaction fees to regularly repurchase ORDER Tokens, while allocating rewards to stakers and the community governance wallet.
This proposal replaces the USDC-based staking reward system, while adjusting the VALOR mechanism to protect the rights of stakers during the transition.
MAIN CONTENT
Use up to 60% of net transaction fees to periodically repurchase ORDER Tokens.
Staking rewards are evenly distributed between esORDER and the community governance wallet.
Replace USDC staking rewards and adjust the VALOR mechanism to protect user rights.
What is Orderly Community Proposal #2 and what are its goals?
Proposal #2 in the Orderly Community proposes a mechanism to use up to 60% of net transaction fees to periodically repurchase ORDER Tokens, creating sustainable value for token holders. This fee is divided into two parts to increase staking incentives and maintain community activities.
This mechanism not only enhances liquidity and Token value but also promotes transparent governance participation by allocating half to the community wallet for future decisions such as burning, liquidity support, or incentives.
How is the reward distribution and new staking mechanism?
The staking reward mechanism will issue 50% of the buyback fund in the form of esORDER, unlocking linearly over 3 months, providing long-term benefits for Token holders. The remaining half will be transferred to the community governance wallet for development or governance activities.
Thus, stakers not only benefit from immediate rewards but also enjoy governance rights and project development support through community allocation, stimulating long-term commitment and ensuring a balance between individual and community interests.
How are the changes in the staking reward system and the VALOR mechanism designed?
The current reward system based on USDC Tokens will be completely replaced, allowing stakers to withdraw all USDC balances and retain their existing rights. At the same time, the VALOR mechanism will be adjusted in connection with esORDER rewards to maintain staking rights during the transition.
This change ensures that the reward transfer process is transparent, does not harm users, while enhancing flexibility in operating the Token ecosystem and improving a safe and sustainable staking experience.
Automatically adjusting the reward mechanism is an essential step to balance project development and protect the rights of participants, thereby building a stronger community.
– Orderly development team, August 2023
Frequently Asked Questions
How does Orderly Community Proposal #2 affect stakers?
Stakers will receive rewards in esORDER unlocked over 3 months instead of USDC, while the rewards will also be transferred to the community governance wallet for project development, helping to protect and increase long-term benefits.
What are the characteristics of esORDER rewards?
esORDER is a reward token that unlocks linearly over 3 months, helping to reduce sell pressure and encouraging users to hold Tokens longer.
How is the transaction fee portion used?
60% of net transaction fees are used to regularly buy back ORDER Tokens, creating buying power for the market and supporting stable Token prices.
What role does the VALOR mechanism play in this system?
VALOR is adjusted in connection with esORDER rewards, helping to protect staking rights when converting rewards from USDC to esORDER.
How does the community governance wallet use the rewards?
This wallet can be used to burn Tokens, support liquidity, or other incentives decided by the community through governance.
Source: https://tintucbitcoin.com/orderly-dung-60-phi-mua-order/
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