TAO the first currency to offer exponentially increasing rewards based on how long you stake your tokens. It utilises accelerating rewards as an incentive for staking — the longer you stake, the higher your interest rate grows.
All users of Quickswap between 1st June and 31st June have been airdropped tokens in proportion to their total transacted volume, in Matic. To view your airdrop, simply add the token contract address-
0x49c4806B8cd367CC92B807bA1267357064c60F17Under “Custom Tokens” in your Metamask wallet, while connected to the Polygon Mainnet . The Airdrop value is calculated as:
314 TAO (for everyone using QS) + cumulativeMaticVal/12 (for those with >0 totval) + Random Multiplier (2-5x to ~10% of addresses)Note: There are no penalties for staking, unstaking, or transfers. This protocol uses rewards exclusively to encourage long-term time preference and cause deflationary pressures leading to price appreciation.
How to Stake
The protocol provides a staking library to guide you through the staking process. There is no frontend (yet), though the community should feel free to spin one up. The codebase is designed to be as frictionless as possible — after exporting your key/mnemonic as an ENV_VAR, staking coins is as simple as:
$ export STAKE = 314 $ truffle run StakingLib/Stake.js
Thereafter, unstaking coins is equally simple:
$ export UNSTAKE = 214$ truffle run StakingLib/unStake.js
The STAKE and UNSTAKE variables specify amount, in TAO, that you wish to stake or unstake. It will work as long as STAKE doesn’t exceed your balance, and UNSTAKE doesn’t exceed your stake amount.
Note — The interest (including exponential bonus interest) will be calculated on the amount withdrawn. Thus you will likely get >214 tokens when calling the above command, depending on how long you allowed the stake to exist.
Staking Returns
Here are some rough returns depending on the duration of your stake:
As you see, returns over the first year are ~17%, and they gradually go up. By year 8 you’ll have made 10x, and by year 15 you’ll have made nearly 40x your initial investment
How is this sustainable? HODLonomics
This token tests the thesis that inflation, when algorithmically redistributed to the supporters of the protocol, supports the token’s stability, security and growing value over the long term. It utilises an exponential proof-of-elapsed-time algorithm to reward those who display the longest time preference (and thus best support the long-term success of the protocol).
Understanding how a token with inflating supply can also keep increasing in value, requires some understanding of Monetary theory — we’ll keep it as simple as possible.
We suggest that Monetary Velocity (V) is inversely correlated to asset price (P), when demand is constant.
V ∝1/PThe argument is straightforward — over time, an ever increasing percentage of tokens will get allocated to those who display the least time preference (HODLers), and hence are least likely to dump large volumes of tokens and cause a reduction in value (including their own token’s value). Secondly, at any given time, many people with have valuable long term stakes in the success of the network, providing demand and thus continuous upwards pressure on the price.
Glad you’re participating in this experiment! This was only the introductory article. Some further reading:
- The math behind infinite value appreciation (coming soon)
- Exponential Returns for an Exponential Age (coming soon)
- Whitepaper: https://ipfs.io/ipfs/QmY1ux3avsMDEtpTAhSsEZyHaggcEFGZhNCg5MGH3qvSme
