Infinity Staking v1
The art of staking a token within itself.
Last updated
The art of staking a token within itself.
Last updated
Infinity staking is a mechanism to stake a token within itself. Instead of locking inside of a contract, users can stake by locking their token inside their own token.
How does that work?
This is a design that is iterated off the ERC404 standard by Pandora.
When a token is minted, it creates two representations of itself, an ERC20 and a ERC721. When a user receives a ERC20 , they automatically are minted a ERC721 that is linked to their ERC20 and vice versa. Important to note both tokens are pointers to the same asset but at the same time are separate objects.
Using this mechanic GOMU creates an internal layer within the ERC721 version of the token that can accept the ERC20 token it is linked to. This becomes the staking layer and it allows the ERC20 token to be staked within its own ERC721 representation.
Because the ERC20 version of itself is staked, it acts like a staked asset. It cannot be transferred as it no longer is in possession of the user. However, because its container is a direct representation of itself as a ERC721, that version of itself can still freely move, and is still under ownership of the user.
Use Case
This staking mechanism introduces many new use cases for the industry.
Free staking - No more locking tokens into contracts. This new standard can be built upon by any earn protocol to allow Infinite Staking of their staking tokens.
Functional Rarity - Because the NFT itself has a unique ID, rarer nfts may have higher quality rewards when staking. For example, if Pandora were to add infinite staking, A red box might offer higher APR than a blue box. ETC There are plenty of applications when applying the rarity of a NFT.
Allocation - A solution to the private deals and allocation problem would be to provide investors with tokens that are infinitely staked for a duration. For example, if Gomu were to create a private sale, GOMU could mint the investors the $GOMU token that already is Infinity Staked with a duration of 2 months. The investors receive locked allocation of tokens that is earning APR, but they can also freely sell this allocation to anyone if they choose to.
These are simple top of mind ideas, there are so many things that can be done with Infinite Staking. Gomu will work with any teams interested in integrating these into their design.
