Bonus Rewards System by Stake DAO

Published on: 09.08.2021

Stake DAO launched the new Bonus Rewards System, which dishes out extra rewards every week to NFT Stakers & the most active users.

The vision is to make Stake DAO a platform that incentivizes its most dedicated users, encourages smarter asset management, and ultimately optimizes revenue generation for the DAO.

Each week, users will be able to claim bonus rewards for all their activity on the platform, based on several metrics that quantify their level of contribution to DAO revenues. Bonus rewards are supplementary to existing Strategy rewards — and serve as an extra incentive for activity on Stake DAO.

Stake DAO NFTs have been carefully woven into the Bonus Rewards System, and today we announce that Tempest and Pythia grant their holders the ability to receive a multiplier/booster effect on this new rewards mechanism. This post explains the NFT powers within the context of this new system, and outlines how users can now enjoy additional rewards for using Stake DAO!

🔹How do bonus rewards work?

Bonus reward allocations are determined by the amount a user has allocated in strategies, the score of each strategy, and the level of NFT rarity (Common, Rare, Unique). Users that allocate to strategies with higher scores will receive more rewards.

Users can claim bonus rewards each week via Polygon using the dashboard’s new Rewards tab.

🔹What are the NFT powers?

Holders of Pythia and Tempest will enjoy varying levels of ‘power-up’ on Bonus Rewards, determined by the dollar-amount they have staked in our strategies, as well as the rarity of their NFT.

As you can only stake one NFT at any one time, you are advised to stake your most powerful (i.e. most rare) NFT.

🔹How are bonus rewards allocated?

As a result of the SDIP #4 dynamic rewards proposal, each Stake DAO strategy is now assigned a score in accordance with its profitability to the DAO.

Strategy scores represent the weight of each strategy, in a similar vein to Curve tokenomics. The sum of all strategy scores is equal to one, and each strategy makes up a fraction of this total. Scores change over time as Strategy Holdings and base APY evolve.