Community Wallet Staking
Community Wallet Staking is not yet approved by the Etherscape community. This is currently just a proposal which will go through a governance vote for approval. If approved, it will be implemented in the following weeks.
Enjin Staking Overview
Enjin Blockchain uses a Proof of Stake (PoS) protocol for chain security. Users participate by staking their ENJ token in nomination pools. Staked ENJ (SENJ) is used to nominate validators which process the blocks on the chain for rewards. These rewards are then shared with the pool and evenly distributed based on the amount of SENJ contributed. Currently, staking rewards range from 15% to 40% yearly returns depending on the pool.
Converting staked ENJ back to regular ENJ (and thus claiming your rewards) takes 28 days. During this un-stake time, rewards are not earned.
Note that staking is not without risk. In the unlikely event that a pool nominates a validator that then attacks the chain the staked ENJ can be "slashed" and thus lost. As of the time of this writing, no pools have ever been slashed on the Enjin Blockchain.
Staking for Community Wallet
The Communtiy Wallet holds funds which are used to reward players for various in game activities. By staking these funds, they will earn rewards which will accelerate the Community Wallet growth. This in turn will increase weekly rewards to players.
Every week, a predictable 3% of the Community Wallet is used for player rewards. Given the 4-week un-stake time on Enjin Blockchain, we can predict how much ENJ needs to be held to safely have enough to pay out player rewards.
(4 Weeks) x (3%) = 12%
In order to give some extra buffer, we will approximately double that to 25%. This means that 75% of the Community Wallet can be staked without impacting player rewards.
The Community Wallet will only be staked in pools that are owned by Etherscape. This will ensure that we have control over which validators are nominated to avoid slashing and maximize rewards. It will also allow the Community Wallet to get additional rewards as the pool owner.
Rewards Estimate
Here is an example about how the rewards could work out in practice....
Assume the Community Wallet has 100K ENJ in it.
Based on that, 75K ENJ is eligible to be staked.
Assume the pool is earning 30% yearly rewards.
This results in 22.5K ENJ rewards per year to the community.
This amounts to ~431 additional ENJ to the Community Wallet weekly.
Technical Implementation
Every week an automated process is run to distribute rewards from the Community Wallet to various activities for players such as enjinte, arena and heorics. As part of this process, we will examine the ratio of staked and un-staked ENJ. We will then take the following actions based on the ratio
Greater than 77%
Trigger an un-stake request to release more ENJ for future player rewards. This will take 28 days to complete
Less than 73%
Trigger a new stake into a pool to start earning rewards on it.
Between 73% and 77%
Take no action. We are close enough to the desired ratio
By doing this, we will ensure that we always have enough ENJ to pay out player rewards but stake as much as possible to grow the Community Wallet
This process will be fully automated using the Enjin Platform and Managed Wallets. However, since relaychain support is not yet present in the Enjin Platform, we will use manual work arounds in the short term.
Temporary Implementation
Because Relaychain support is not yet ready on the Enjin Platform we will use a manual work around including the following actions...
Instead of using a managed wallet, Community Wallet ENJ for staking will be sent to a separate wallet run by the Etherscape team (address to be published)
Each week, the automation will produce an output indicating how much ENJ needs to be staked or un-staked.
The Etherscape team will manually trigger the stake/un-stake operations on behalf of the game
To automatically read information about staked ENJ we will use API's provided by our friends at the Substreak service.
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