As part of our ongoing commitment to innovation and improvement, we have decided to deprecate our current staking contract in favor of a new system that will benefit the entire SNS ecosystem, including the introduction of a liquidity incentive program.
Since the implementation of our staking contract, we have learned a great deal about the challenges that come with governance and incentivizing active participation. We've noticed that our current staking model does not effectively encourage voting, resulting in suboptimal governance processes. Additionally, we realize the importance of attracting users who genuinely want to contribute to the network, rather than just those looking for passive rewards.
We are also excited to announce the implementation of a new liquidity incentive program. This program aims to incentivize users to provide real liquidity on various categories, reward users who place bids close to the floor price, as well as reward users who provide long-term liquidity. Furthermore, the program will help improve the distribution of .sol domains in the most valuable categories.
The liquidity incentive program is an experiment that will initially last for three months. Based on the results and feedback, the program will either continue or stop. We believe that this program will help distribute tokens more effectively among the community, fostering a healthier and more engaged ecosystem.
By distributing tokens more effectively among the community, the liquidity incentive program will lead to a more diverse group of token holders. As a result, a broader range of users will be empowered to vote, creating a more robust and representative governance system.
The grant program will play a crucial role in improving the developer ecosystem as staking rewards will be directed to fund grants. By offering financial support for community-driven projects, the grant program will help spur the growth and adoption of the Solana Name Service ecosystem. Contributions can be in the form of developing projects, integrations, marketing media, or business development work.
Exciting developer initiatives that could be funded through the grant program include the development of a mobile app to make it easier for users to access and manage their assets on-the-go, or the creation of an alternative frontend to enhance user experience and provide more options for user interaction.
The key objectives for these transitions are:
- Rerouting staking rewards: By redirecting staking rewards toward the developer ecosystem, we aim to foster innovation and growth by incentivizing developers to build new and innovative solutions on our platform
- Introducing a new governance system: To empower active participants in the network, we are working on a new governance system that will prioritize contributions and engagement, ensuring that the project's future is shaped by those truly committed to its success.
- Implementing a liquidity incentive program: This program will help distribute tokens more effectively among the community, contributing to better governance and a more engaged ecosystem.
- Launching a grant program: By funding community-driven projects, the grant program will help improve the developer ecosystem and further solidify the Solana Name Service community.
We believe these changes will significantly improve the overall health and long-term sustainability of our project. By prioritizing active participation, incentivizing the developer community, and introducing the liquidity incentive program, we will create an environment that fosters collaboration and innovation.