Governance Proposal: Staking Migration

Several major milestones, part of AdEx’s ongoing development, have reshaped the role of the $ADX token. These include reaching the total supply cap and expanding ADX’s utility within AURA for boosting recommendations, AI agent execution, API usage, and acting as a security guarantee, just to name a few. Alongside these changes, we are introducing a new and improved staking mechanism designed to align better with the future of the AdEx ecosystem.

The new staking setup will:

• Provide a more secure, flexible foundation for the next chapter of AdEx and AURA.
• Align staking incentives with the long-term growth of the ecosystem.
• Make future upgrades smoother, without needing hard resets.

This governance proposal outlines the first steps toward that upgrade.

You can read the full blog post with more background details here.

The governance proposal

We're proposing a new staking mechanism to reflect the expanded utility of $ADX and support future growth. The key changes include:

• One unified pool for all protocol rewards and revenue
• Rewards will continue to be distributed in locked (staked) $ADX; non-ADX revenue will be converted to $ADX (except integration fees)
• Stakers will choose lockup duration; longer locks = more rewards and more visibility
• No unbonding period; points (voting and rewards) decay as unlock date approaches

This upgrade is designed to align incentives better, streamline protocol economics, and unlock more flexibility for the future.

To implement this, we propose developing, auditing, and deploying two new smart contracts:

• Migrator contract: A dedicated contract that will grant governance permissions to the existing staking pool and is designed to facilitate user migration.
• ADX-STAKINGv2 contract: A brand-new staking pool that will serve as the foundation for all future staking activities in the AdEx ecosystem.

The migration will apply to the Tom Pool.

Migration process

The migration process is designed to prioritize flexibility and fairness, with a soft deadline driven by a reward decay mechanism:

• Once the migrator contract goes live, reward distributions to the old staking pool will be frozen.
• Your original principal will always remain migratable, but when moved to the new pool, it will automatically enter a 60-day lock period.
• Accounts currently unbonding will need to complete their unbonding process before migrating.

Earned rewards will:

• Migrate fully if you move within the first 30 days.
• Start decaying after 30 days at a steady 1.11% per day.
• Be fully zeroed and burned after 120 days if not claimed.

This ensures users have time to migrate without pressure, but rewards timely participation.

Voting

Voting is open to holders of our two governance tokens: ADX-STAKING and ADX-LOYALTY. Please note that you won't be eligible to vote if you hold ADX tokens but haven't staked them.

The voting period for this proposal will start on May 5th, 2025, and end on May 19th, 2025.

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