Staking

What is Staking

Staking is the primary value accrual strategy of PirateDAO. Stakers stake their JOLLY tokens on piratedao.money to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of JOLLY staked in the protocol and the reward rate set by monetary policy.

Staking is a passive, long-term strategy. The increase in your stake of JOLLY translates into a constantly falling cost basis converging on zero. This means even if the market price of JOLLY drops below your initial purchase price, given a long enough staking period, the increase in your staked JOLLY balance should eventually outpace the fall in price.

When you stake, you lock JOLLY and receive an equal amount of ROGERs. Your ROGERs balance rebases up automatically at the end of every epoch. ROGERs is transferable and therefore composable with other DeFi protocols.

When you unstake, you burn ROGERs and receive an amount of JOLLY tokens Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked JOLLY (if any) will continue to receive rebase rewards.

Unstaking Fees

Here at PirateDAO, we apply an exclusive unstaking fee in order to protect our investors from most of the dumps at each rebase. This fee is 10 % of the unstaked amount. It means that when the user wants to unstake 10 ROGER, he will get 9 JOLLY. This measure will encourage the user to stake his assets longer if he don't want to be at loss.