Governance Proposal Results: Halving of Rewards Approved

Following the most recent governance vote, the AdEx community has opted to prolong reward distribution by reducing staking rewards by half.

Veselina Yaneva

Feb 1, 2024 • 1 min read

AdEx's governance vote leads to halved staking rewards

In a recent governance proposal, the AdEx community collaborated to determine the future of staking rewards for ADX holders. The proposal addressed the sustainability of rewards distribution until the launch of the AdEx platform, set for Q2,2024 when rewards will be generated from platform transactions.

Vote summary

The governance proposal presented ADX stakers with two options:

Maintain the current APY for an additional 5 months: This option suggested keeping the current APY for an extra 5 months, after which the APY for stakers would drop to 0%.
Halve ADX Rewards: The second option proposed a halving of the ADX rewards rate. This reduction in the rate of new rewards would extend the rewards distribution period to 12 months with a lower APY until the anticipated launch of the AdEx platform in Q2, 2024.

Community decision

After a two-week-long voting process, the ADX community chose to halve the staking rewards to extend the distribution period. The additional tokens needed for this adjustment will be sourced from the team's treasury. This measure will effectively prolong the rewards distribution period by 12 months, providing enough time for the AdEx platform to launch and to generate rewards from platform transactions, as initially planned.

This decision is scheduled for implementation until the 13th of February, 2024.

Conclusion

The governance proposal on staking rewards reflects the strength and engagement of the ADX community, leading to a clear direction for the future. By opting to extend rewards distribution through the halving of staking rewards, the ADX community collectively ensures the stability of awards distribution until the AdEx platform launch in Q2, 2024. With these changes taking effect by the 13th of February, ADX stakers can anticipate a continued rewarding experience, contributing to a strengthened foundation for the AdEx ecosystem.