Staking Module

Staking strategies based on the veModel and
the 80/20 LP Staking Model

Increase holder retention

Reduce sell pressure

Improve token stability

Enhance liquidity and security

Promote real decentralization

Scope Definition

Overview

Most utility token-based protocols face critical challenges such as:

Low holder retention due to a lack of sustainable incentives.

High sell pressure that reduces token value.

Inefficient governance with low participation in voting.

Uncontrolled inflation models, affecting stability.

We implement advanced staking strategies based on the veModel (Vote Escrowed Model) and the 80/20 LP Staking Model, inspired by Curve and Balancer

Better incentive alignment between holders, investors, and the protocol.

Organic demand generation for the token, increasing its utility.

Liquidity optimization with pools that reduce volatility.

Active governance participation for key ecosystem decisions.

Key benefits

Increase holder retention with long-term incentives.

Reduce sell pressure with attractive and sustainable staking.

Improve token stability through efficient supply mechanisms.

Promote real decentralization through effective governance models.

Enhance liquidity and security with advanced staking strategies

The problems

Centralization

1

Designing a fair and balanced system for issuing and distributing tokens is difficult, as it risks favoring early adopters or large holders, leading to centralization. due to a lack of sustainable incentives.

2

Balancing

Balancing inflation are another issue, potentially encouraging harmful behaviors like short-term profit-seeking, which can undermine network stability.

Governance models

3

Governance models must ensure efficient decision-making without compromising decentralization, a delicate balance that's crucial for the network’s growth and security.

4

Align incentives

(supply inflows vs utility) , as un-simulated token supply scenarios can result in value loss or excessive volatility, destabilizing the ecosystem.

Red or Blue Pill?

Inflation:

High

Liquidity Pool:

Low

Incentives:

Short-term

Supply & Demand:

Selling Pressure

Token Utility:

Low

Governance:

No Gov. Rights

Security:

Easy Prey

Allignment:

No Alignment

Inflation:

Enough

Liquidity Pool:

Strong

Incentives:

Long-term

Supply & Demand:

Buy-Pressure

Token Utility:

High

Governance:

High & Long-Term

Security:

Better Decentralization

Allignment:

Tokenholders Alligned

Proposed Solution

Staking veModel

Single Token

Liquidity Pool Token

3x Utility (triple)

Yes

Yes

Token Holding Mechanism

Yes

Yes

Incentives Driver

Yes

Yes

Supply & Demand

Yes

Yes

Liquidity

No

Yes

Background

1

Curve.fi came up with the "veModel Staking" as a long-term means for the protocol's community commitment, changing the incentivization rules and becoming an Standard.

2

After the success, Balancer.fi innovates and launches its version "80/20 LP veModel" where liquidity provision and staking mechanism are merged.

3

Protofire and Balancer, creates a Ve Launchpad & implements Vemodel 80/20 into several projects accelerating adoption and enhancing their tokens performance & utility.

Standard Staking Deployment

From 4 weeks

ANALYSIS

Milestone 0

Team Set-up
Backlog creation & R/D

SMART CONTRACTS

Milestone 1

Team Set-up
Backlog creation & R/D

FRONT-END

Milestone 2

Frontend functional customization
Frontend functional deployment
Functional Testing

HANDOVER

Milestone 3

Handover Document Craft
Staking configuration Support

Estimations

High-level Estimation Rationale

Designing a fair and balanced system for issuing and distributing tokens is difficult, as it risks favoring early adopters or large holders, leading to centralization.

Standard Staking veModel Module

Estimated Basic Compensation (USD)

$20,000 to $ 40,000

Customized Staking Module

Estimated Basic Compensation (USD)

$40,000 to $80,000

Outcome-based compensation*

% in Protocol tokens

(on top on basic compensation)

Outcome Based Compensation

Protofire since 2019 offers a Outcome-based compensation model, an outcome-based compensation model is proposed in order to incentivize and engage the engineers working in the long term.

The payment of this price component is based on a successful tokenomic outcomes.

Outcome-based compensation

0.05% to 0.75% of total Supply

(on top on basic compensation)

Happy long-term partners (under this model)

filecoin logosafe logochainlink logognosis logokadena logoharmony logocow logohoney logo

Tokens for Staking

0.005% after Staking Launch Incentive Package:

% Staked Circulating Supply% Total Supply
10%0.010%
20%0.020%
30%0.030%

Align Interests

Outcome based compensation Thrive tokens will be fully staked for three years counting from the TGE.

After that period a linear unstaking program of 24 months can be performed.

Rewards

Only Rewards from staking can be monetized immediately.

Why Protofire

Customization Minimizing Audit Requirements

Cost-effective solutions.

Customization Minimizing Audit Requirements

Fast Implementation

Efficient deployment tailored to your protocol.

Customization Minimizing Audit Requirements

Long-Term Business Model

Sustainable growth and continuous support.

Customization Minimizing Audit Requirements

Battle-Tested Code

Secure and optimized smart contracts.

Customization Minimizing Audit Requirements

Expert Team

Decentralized finance and staking specialists.

Customization Minimizing Audit Requirements

Success Staking Stories

zeebu

zeebu

aethir

aethir

balancer

balancer

flare

flare

saga

saga

Proposed Team and Infrastructure

Proposed Team

Protofire

Full stack developer
Back end developer
QA Engineer (shared)
Project Manager (shared)
Field CTO (shared)

Client

Product Manager (part time, only to review and validate deliverables)

Infrastructure

Protofire will provide

Workstation for project team
BOffice automation and project management platforms
Account and contract management
IT security
Data repository for deliverables

Client

Cloud infrastructure, setup and maintenance for test and production environments (if applicable)

Governance Model

Daily Progress Calls

The team has a daily status calls to sync up on the current project status, discuss progress, risks, blocking issues, and plan for the next week.

Weekly Status Reports

These reports show the previous week’s accomplishments, list the work items completed and outline the key tasks for the week ahead. A review of newly identified project issues, as well as issues that have changes in their status, is also included into the status reports.

Biweekly Timesheet Reports (Time & Materials)

The team members send detailed timesheet reports that contain the following information: Name, Task, Time Spent.

Daily Email/Call Status Updates

These reports are sent/ conducted during critical stages of the project.

Juan Faya

Book a call with Juan Faya

Schedule a call with our CTO to receive practical recommendations and a prompt proposal for upgrading your solution.