Connect Financial Staking Portal Part 1

As we prepare to launch our Token Portal which is your gateway to interact with and view a multitude of information having to do with the Connect Tokens, Treasury Tokens and Governance, we are taking this time to do a write up to explain some of the systems.

Keep in mind as we go through this that some systems may change overtime as we upgrade our contracts and that some values may change as the DAO votes on any changes.

Our main goal when we develop anything regarding the token is keeping in mind that we want the power to propose changes to be in the hands of the community. We accomplish this through our Governance and DAO model. Anything that is a variable figure we want the DAO to have the capacity to control and influence, from the amount of staked tokens it takes to qualify for a Tier, to the interest rates charged in the protocol, to the overall supply and allocation of CNFI. Everything is able to be modified through a proposal-vote-implement system.

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Staking Mechanics

Our first section will cover the basics of staking your CNFI, claiming rewards, reinvesting, unstaking and the evolution bonus.

Why should I stake my Connect Tokens and what do I get?

  • You become eligible for a weighted portion of the daily reward pool of CNFI tokens.

Is this all? No, but it’s a pretty good start for today.

What is “Weighted Portion”?

Our systems use a Weighted value for determining reward distribution, it is quite simply the amount you have in a pool compared to the total amount in the pool.

For example, let's say the staking system has a total of 1,000,000 CNFI staked in the pool, and you have 24,000 CNFI staked. Your weight is 24,000/1,000,000 or 2.4%. With a daily reward allotment of 5,000 CNFI, your reward would be 5000*2.4% or 120 CNFI per day.

How do I Stake my Connect Tokens?

To stake your CNFI Tokens you must:

  • First connect your metamask wallet to the Staking dApp by clicking in the upper right hand corner on the Connect button and follow the prompts from Metamask

What is Evolution Staking

  • Evolution Staking allows users to commit their Connect Tokens to a long term period of staking in exchange for an increased staking weight

Claiming Rewards

Every day you earn rewards from staking they are deposited into the smart contract for you to claim. You can view your unclaimed rewards by navigating to the staking page. From there you can click on Withdraw Rewards.

On the pop up you will see how much in rewards you have to claim and hit Withdraw. Again, follow Metamask commands to approve the transaction.

Unstaking

Lastly we will cover the process and mechanics behind unstaking. The process to unstake is fairly straightforward, but the implications are the important thing to take into account.

Are there any Unstaking Penalties? Yes, under certain circumstances, we have two different penalties for unstaking.

We have a base penalty for unstaking, which will be set to 0 initially, it will be up to the DAO to decide whether to raise it in the future. This penalty is set as a percentage of the amount unstaked.

There is also a penalty if you are earning an Evolution Bonus. This penalty is a multiplier of the amount of bonus CNFI you have earned since you started staking. Initially, this is a 2:1 penalty (2x multiplier).

For example, if you staked 200,000 CNFi for eight cycles and after 3 months you had accrued 1,000 CNFI from the bonus weight, and unstaked all 200,000 CNFI (and you had no unclaimed rewards), you would be penalized 2,000 CNFI on your unstaking.

In this same example, if you unstaked from 200,000 CNFI to only having 100,000 CNFI left, you would get penalized based on the amount of bonus you earned from the 100,000 you are unstaking and your new earning bonus goes down to the Platinum tier as you are no longer eligible for Black tier.

Unstaking penalties initially are redirected back to the Treasury and the DAO does retain control to change this in the future.

Some Frequently Asked Questions

What happens if I increase/decrease my stake at any time when I have a card?

  • We actually have two separate systems here, one is the staking controller and one is our client portal backend.

What happens if the cost of Connect Tokens increases or decreases over time, will the tiers adjust?

  • Our intent is to always keep the actual business of expanding our card users as our primary goal. We would not gatekeep this part of our business with the token tiers becoming effectively unavailable for the majority of people.

If you have any questions, or scenarios we will be posting a Staking AMA in our discord so please join us there and we will update this document as necessary.

In Part II we will cover the Treasury and pCNFI tokens that you also earn by staking CNFI and can redeem for a portion of the protocols quarterly fees generated.