III. Vote-to-Earn Staking Awards
III. Vote-to-Earn Staking awards
Staking is defined as the process of taking HOM tokens and redepositing them on HOM protocol to help the protocol create liquidity. You don’t have to own property to stake, you just need to have some HOM tokens.
HOM DAO has pioneered the concept of Vote-To-Earn Staking. In order to receive staking awards, DAO members have to vote at least monthly. There are other activities that the DAO may from time to time deem as beneficial to the community which can also apply in the vote-to-earn model.
Slide: Vote-to-Earn
Vote-to-Earn staking is a unique feature of the HOM Protocol and interweaves the blockchain based voting system for HOM Protocol with the staking awards system. The more voting (or other beneficial activity that can be tracked on the blockchain) the higher the staking award. For example, the DAO has set an initial staling award of 100% APY. In order to receive this, the HOM owner must stake their tokens and vote at least 3 times a month. Failure to vote ends up in a form of slashing (which is the confiscation of staking awards due to bad behaviors). The HOM owner receives 33% of the award for each vote. So if they vote 3 times during the month, they will receive the full award. If they don’t vote there is no award provided for that time period.
The goal of vote-to-earn is to create a more informed and active DAO community. The HOM token is a governance token, not a security token, and the goal in issuing more of the tokens is to raise funds to support the ongoing development of the HOM DAO projects and support actions that lead to an informed, involved community.