What you need to know about PSTAKE
$PSTAKE is an ERC-20 token that delivers a two-fold benefit to its holders:
- Voting rights
- Direct benefit from the economic activity in the pSTAKE ecosystem via fee sharing
The pSTAKE protocol uses $PSTAKE as its governance and fee-sharing token. Holders of $PSTAKE can participate in the protocol’s governance in order to ensure pSTAKE’s long-term success while also collecting a portion of the application’s fees.
pSTAKE is currently issuing 1:1 pegged ERC-20 liquid staking representative tokens on the Ethereum network, with the long-term goal of developing a multi-chain protocol that allows liquid staking across many networks, including the Persistence Core-1 chain.
$PSTAKE aligns stakeholder incentives in the pSTAKE liquid staking ecosystem at its core.
These stakeholders are:
- Users (stkTOKEN holders)
- pBridge Validators
- Safelisted Validators (validators who receive delegations via the pSTAKE protocol)
- pSTAKE governance participants
The holders of stkTOKENs are referred to be pSTAKE users in this context. Holders of stkTOKEN can utilize their staked representative tokens as collateral on lending platforms, provide liquidity on DEXs, and engage in a variety of other activities to increase the yield on their assets.
stkTOKEN holders will be rewarded for participating in actions that will help the pSTAKE ecosystem grow faster, such as bootstrapping and providing long-term liquidity on DEXs.
By providing a majority of the pSTAKE supply (50 percent ) to stkTOKEN holders over time, $PSTAKE will effectively link the incentives of pSTAKE users with stakeholders of the supported network.
The pSTAKE team is also working on a system that would allow representative token holders (or stkTOKEN holders) to participate in the underlying chain’s governance. Holders of stkATOM, for example, should be able to vote on Cosmos Hub governance proposals. This functionality will be implemented in the near future.
pSTAKE presently offers liquid staking for ATOM (the Cosmos Hub’s native token), with ambitions to support various assets — both within and beyond the Cosmos ecosystem — in the future. This contains ETH, XPRT, LUNA, and a slew of other cryptocurrencies.
$PSTAKE Value Accrual
- With an increase in the protocol’s economic activity, $PSTAKE will gain value.
- Stakeholders in $PSTAKE will gain proportionally to the protocol’s revenue increase.
The sources of revenue generation are as follows:
- Minting Fees: These fees are charged for minting pTOKENS against user deposits.
- Service Fees: A portion of staking incentives earned by stkTOKEN holders is used to pay service fees.
The following variables can help pSTAKE’s revenue grow faster:
- Adding more assets to the mix would generate new revenue streams in the form of minting and service fees.
- Continued growth in TVL for stkTOKENs on pSTAKE is likely to result in considerable revenue increases. The underlying blockchain network’s staking rewards (or block rewards) will be critical in maintaining this increased revenue.
- Increased utility of stkTOKENs
this is just the beginning of great things to come.
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