We’re pleased to announce that ADX has reached its maximum supply cap of 150 million tokens! However, this also means that from now on, staking rewards will only come from buybacks and will not have a fixed, consistent APY.
A year ago, our community collectively decided to implement a halving of the ADX staking rewards, which aimed at extending the duration of rewards distribution, ensuring a more sustainable and prolonged benefits system for participants.
To address the current suspension of staking rewards distribution and extend the period for distributing rewards, we present two viable solutions for consideration:
- Extending the rewards by an additional 2 million tokens – we propose extending the staking rewards by issuing an additional 2 million tokens. Based on the current rate, this allocation would sustain rewards distribution for approximately 73 days. To accommodate this extension, the 2 million tokens will be sourced from the AdEx treasury, resulting in the freezing or burning of an equivalent amount of ADX to offset the newly minted tokens.
- Halving of the ADX rewards – in addition, to further extend the rewards distribution to approximately 146 days, we propose to halve the ADX rewards rate. This adjustment will reduce the rate at which new rewards are generated, ensuring a more sustainable and prolonged rewards experience for participants. Halving of ADX rewards would mean that the current APY of 15.25% will be further decreased.
The Governance proposal
The voting period for this proposal will commence on July 10, 2023, and conclude on July 21, 2023. The decision of the vote will be implemented within 1-5 days after the end of the voting period. Voters hold the authority to determine the future course of action with the following options:
- Extending the rewards by an additional 2 million tokens.
- Extending the rewards while simultaneously halving the ADX rewards rate.
- Maintaining the staking pool with a 0% APY.
Who can vote?
The voting opportunity will be exclusively available to holders of our two governance tokens: ADX-STAKING and ADX-LOYALTY. Please note that individuals holding ADX tokens without staking them will not possess voting rights.
You can participate in the voting process on Snapshot: