Staking DAO
Users have the option to stake on ETH or BSC networks. Let's dive into how the process works and the key differences between the two networks. On both networks, users earn 1 DAO Power for every 1 DAO staked.
You can stake your DAO using this link: https://app.daomaker.com/staking
Staking on ETH Network
When staking on the ETH network, users can select:
Amount of DAO to stake
Duration of staking, which can range from 30 to 1095 days
The longer the staking duration, the higher the APR. There is a 15-day hard lock at the start, during which users cannot unstake. After this period, users can unstake, but a fee applies (detailed below).
Shares
Shares are used to determine how many rewards each staker earns. Users receive 1 share for every 1 DAO staked as a Base Shares. There are additional bonuses (Bonus Shares) for committing to long-term staking and staking larger amounts:
Long-term bonus: For every year committed, users earn a 600% share bonus, up to a maximum of 1800% for 3 years.
Large stake bonus: Users staking between 50k and 1M DAO receive an additional 0-50% share bonus, depending on the amount staked.
User's shares: (Base Shares + Bonus Shares) / Share Rate (explained in the section below)
The smart contract keeps a record of the total shares each day to ensure accurate reward calculations.
Share Rate
The Share Rate is a mechanism that adjusts how many base and bonus shares users receive when staking, based on when they stake. Over time, the Share Rate increases, meaning users who stake later receive fewer shares for the same amount of staked DAO than those who staked earlier.
This mechanism ensures that early stakers are rewarded more, and it prevents the compounding effect that would allow users to restake their rewards repeatedly and unfairly accumulate more shares.
Every time a user unstakes, the Share Rate is checked and possibly adjusted so that with the amount of DAO a user received back (DAO stake part + DAO reward part), he won't get more shares than he had before with less DAO (DAO stake part). He would receive exactly same shares.
Currently, the Share Rate is around 1.4, which means staking today will give you around 30% fewer shares than staking on day one.
Example:
Bob stakes 10 DAO for 10 days, earning 12 shares (10 shares + 2 bonus shares).
After 10 days, Bob unstakes and receives his original 10 DAO plus 5 DAO in rewards, totaling 15 DAO.
Bob stakes 15 DAO again, expecting more shares since he’s staking more tokens. However, due to the increased Share Rate, Bob still only receives 12 shares—the same as before, despite staking more.
Rewards Calculation
Rewards are distributed daily, and the amount of rewards changes day by day. The reward pool for each day is filled manually, so some days may have a higher pool than others. For detailed information on current reward distribution, check daoanalytics.
To calculate daily rewards:
User Daily Rewards: Total Rewards of That Day × User Shares / Total Shares of That Day.
The total reward a user earns during their staking period is the sum of Daily Rewards for each day individually.
Early Unstake Fee
Users have the option to unstake earlier than their committed lock period, but doing so incurs a fee. The Early Unstake Fee is equal to the amount of rewards the user would have earned during the first 50% of their committed staking period, referred to as Fee Days. Note that the minimum Fee Days is 30.
Early Fee: Accumulated User Rewards for the Fee Days.
If user unstakes before he staked for Fee Days, he doesn't only lose rewards, but also a portion of his stake. In that case, the Early Fee is averaged as following:
Early Fee: (Accumulated User Reward × Fee Days) / (Unstaking Day - Stake Starting Day)
Fee Calculation Example
For example, user stakes 50k DAO for 500 days and he yields on average 10 DAO a day, for simplicity. His Fee Days is 250 and Early Unstake Fee is therefore 2500 DAO.
1) He decides to unstake on day 200.
By that time, he accumulated 2000 DAO as rewards. Meaning that on unstake he receives 49.5K DAO (he lost 500 DAO of his stake).
2) He decides to unstake on day 300 (more than Fee Days).
By that time, he accumulated 3000 DAO as rewards. Meaning that on unstake he receives 50.5K DAO (he lost DAO only from his accumulated rewards) The source code for our ETH staking contract is available on etherscan.
Staking on BSC
Unlike the ETH network, where users choose a specific staking period, the BSC network has a fixed 15-day cooldown before users can unstake. This means that when users want to unstake, they must first request to unstake, and after 15 days, they are free to complete the process.
Unstaking Fee
If users attempt to unstake before the 15-day cooldown period ends, a 15% fee is applied to their staked amount. Therefore, it’s important to wait for the cooldown period to end to avoid this penalty.
APR and Purpose of Staking on BSC
Unlike on ETH, users should not expect high APR when staking on BSC. The main purpose of staking on the BSC network is to provide DAO Power for BSC users rather than to earn high rewards. The source code for our BSC staking contract is available on bscscan.
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