This post describes the sunsetting of LRC staking v1, the final amounts to be rewarded to stakers, and how these final distributions will take place on L2, and/or be burned. LRC new token model will be unveiled next week.
Loopring’s LRC Staking Pool from v1 was designed with a few game theory factors. If someone understands the rules or code better, they will be able to act wisely based on public data and other people’s behaviours to earn more rewards.
In reality, we haven’t seen many users care about this, and most stakers are passively waiting for profit. This collective passiveness has been amplified by time and ended up with a situation where a few savvy stakers will take all or most of the rewards. We, the Loopring team, happened to be one of those ‘winners’. By claiming rewards that had a long staking age (and thus large ‘points’ and claim on the protocol fees from v1), we received a big chunk of the rewards.
To avoid this from happening again, and since v1 staking is being sunset anyways, we need to minimize the game theory factors, and distribute the remaining rewards on L2. We will also distribute the rewards that we just earned, also on L2. We feel this is only right. Although the dynamism of the staking ‘game’ was well known and the contract code is open sourced and verified, the game theoretic dimension was not communicated clearly enough. The LRC stakers that passively staked deserve their rightful reward.
Each staker will still get their reward proportionally to their `staking_amount*staking_duration`.
This is the initial formula, the expectation of most users was that they’d get this no matter what, and we will respect that. So if you see a reward of ‘0’ on the staking interface now, fear not, the calculation above will be used to send the rewards to you on L2.
If your `staking_duration` is less than 90 days (the minimum before being able to claim), don’t worry, we will use 90 days to calculate your rewards.
All rewards will be distributed to stakers’ L2 accounts on Loopring Exchange v2 (exchange.loopring.io), with “staking rewards” as the memo. This will be done within a week. [If you staked via the Loopring Wallet, you will receive your rewards on L2 in the wallet.]
In addition to the 330,050 LRC rewards that we claimed and will redistribute to everyone, there still exists 406,263 LRC in the Loopring v1 fee vault.
- 66.6% of that was earmarked for a DAO, which seeing as the Loopring DAO does not yet exist, we will distribute this 270,842 LRC to all stakers.
- The remaining 33.3% of fee vault was set to be burned. 135,421 LRC will be burned.
So the total amounts from these allocations is supposed to be 736,313 LRC.
To make up for any confusion this has caused, and as an extra thank you to LRC stakers and Loopring supporters, we will top up the amount to 1,000,000 LRC, so that is an extra 263,687 LRC we will distribute to stakers.
There is nothing for you to do to receive your rewards. They will be sent to you on Loopring L2. This is actually another nice benefit of this plan — receiving your rewards on L2 saves you from making an L1 tx to claim and paying gas.
To be clear, whether or not you have ever interacted with Loopring on L2 doesn’t matter. You can just take the Ethereum address you have staked LRC with and connect to exchange.loopring.io, and your rewards will be there on L2.
The only thing for you to do is, of course, withdraw your LRC stake from the v1 staking contract. Only you can do this. There is no rush, as it will always be there, but there is no benefit to keeping your funds staked in v1 anymore. You can withdraw via the staking.loopring.org UI, or via the staking pool contract on Etherscan directly. Scroll to bottom of this article to see how to withdraw via Etherscan in 2 steps.
Note: if you have staked within the past 90 days, you will not be able to withdraw yet, because the smart contract is immutable, and that is the minimum time to wait before you can withdraw. You will be able to withdraw after 90 days. However, as mentioned above, because we feel we could have done more to prevent users from staking for a deprecated protocol version that isn’t actively accruing fees anymore, we will count any stakes under age of 90 days, as 90 days, and you will receive a reward based on that. You will receive your reward on L2 with everyone else. Just remember to withdraw your stake once it’s mature enough.
Do NOT stake on this contract anymore. There is nothing to gain, and your funds will be locked for 90 days before you can withdraw them, with nothing we or anyone else can do about it. The Staking Contract is officially deprecated as of publication of this post.
Thank you all for being early Loopring supporters, staking LRC, and apologies for any confusion this may have caused you in past day or so. We hope this action plan actually leaves you happier (more rewards, and one less L1 tx to do :). Because v1 staking is now deprecated anyways, this is actually a fine moment for this sunsetting and final distribution to be happening. It prepares users for the the LRC v2 token-economic model which will be released next week!
Loopring is an Ethereum zkRollup protocol for scalable, secure exchanges & payments. Loopring builds non-custodial, high-performance products atop our Layer-2, including the Loopring Wallet — a mobile Ethereum smart wallet, and the Loopring Exchange — orderbook and AMM DEX with no gas fees. To learn more, you can sign up for our Monthly Update or see Loopring.org.