- Soonaverse will conduct the distribution of its first rewards for SOON staking on Thursday, December 8.
- Below are the complete details of how SOON staking works and the benefits associated with it.
Decentralized NFT marketplace Soonaverse introduced staking for its native $SOON tokens last week on the IOTA-based Shimmer blockchain network. The $SOON staking feature has witnessed a strong response from investors boosting the network activity on Shimmer.
As a reminder, Soon Labs announced that the staking facility for $SOON is still available on the shimmer Network. It would be the right time for interested players to chip in before Soonaverse announces the first weekly rewards distribution on Thursday, December 8.
Time is ticking, but you still have a chance! The first weekly reward distribution will happen on Thursday, December 8th at 10:00am PST! Learn everything you need to learn about staking before it begins. @shimmernet @iota https://t.co/82ZJvJXq6k
— SoonLabs | Soonaverse.com (@soon_labs) December 6, 2022
$SOON is the first token availing the staking facility on the Shimmer Network after its launch in September this year. By staking their $SOON holdings, users will gain access to certain features on Soonaverse and also receive yield in the form of additional $SOON.
Besides, users with a staking value of at least 10 can create tokens, NFT collections, and upvote/downvote collections. Staking in this manner also serves as an anti-spamming mechanism.
The staking value represents the amount of SOON tokens staked by the user multiplied by the rewards multiplier. The rewards multiplier depends on the duration that a SOON user stakes their tokens. The official info from Soonaverse notes:
If one chooses to only stake for the minimum 1 week, then they will receive the base multiplier (1x). If they stake for the maximum of 52 weeks then they will receive 2x the rewards. The scale is linear, so if they staked for 26 weeks then they would get a 1.5X multiplier.
How Do Staking and SOON Rewards Work?
Users of SOON tokens can stake their holdings for a period of anywhere between 1 week to 52 weeks. The staked tokens will be locked for the stipulated time period using a built-in time expiry function in the Shimmer Network.
All these locked tokens have metadata so that third parties can reference and prove the staking of SOON tokens. For an immutable trail, all data is stored on IOTA’s Tangle network.
Note that soon as the locking period for the SOON tokens end, the tokens will be unstaked. Also, users will no longer receive the rewards until they restake the tokens again. Based on the total staking value, users will receive rewards every week.
Over the course of 3 years, Soonaverse plans to distribute 6 million SOON tokens. The weekly rewards will be higher for early participants and slowly taper off as time passes. Soonaverse explains: “the first weekly distribution will be 95,388 SOON tokens, the second will be 94,473, the third will be 93,560, etc”.
Users can claim their SOON rewards every week through the Soonaverse UI. The SOON rewards will be available in the user’s wallet via a timelock condition and unlocked one year after the distribution event.
Soonaverse explains: “This one year vesting schedule on reward distributions is independent from staking duration. All rewards must vest for one year”.