GLDT staking
Make your gold work!
Last updated
Make your gold work!
Last updated
GLDT staking introduces a new mechanism for users to lock their GLDT holdings and earn rewards.
Rewards are distributed in Gold DAO's governance reward tokens, namely GOLDAO, ICP, and OGY.
These staking rewards are generated through a dedicated Gold DAO neuron, which directs its rewards to GLDT stakers.
Gold DAO is at the forefront of tokenized gold ownership through GLDT, providing access to fully transparent, decentralized gold assets. In addition to the inherent value of gold ownership, GLDT staking now offers the opportunity to generate passive income. This allows investors to benefit from both gold exposure and yield rewards.
GLDT staking enables holders to lock their tokens in a smart contract/canister and earn Gold DAO governance rewards.
Go to and stake your GLDT. If you don't own any GLDT, go to to obtain your first GLDT! A minimum of 10 GLDT need to be staked in order to participate.
Users can stake GLDT within the designated GLDT staking contract. Upon staking, tokens are immediately locked, and stakers become eligible for rewards in the subsequent weekly reward distribution round.
The Gold staking mechanism utilizes a GOLDAO neuron that participates in Gold DAO governance. This neuron accrues rewards in the form of governance reward tokens (GOLDAO, ICP, and OGY). Each user's share of these rewards is proportional to their GLDT stake size. An age bonus further enhances rewards, increasing by 100% annually. Consequently, two stakes of equal size, one established today and the other a year prior, will result in the latter receiving double the reward share of the former.
Each stake is subject to a one-week unlock delay. Upon staking, rewards are initiated in the current week's round. To withdraw GLDT, a one-week unlocking period is required, during which no further rewards are accrued. Alternatively, an "early unlock fee" of 5% of the stake allows for immediate access to the GLDT.
During the initial phase of GLDT staking, the GOLDAO neuron size will be gradually increased. This approach allows for evaluation of GLDT staking demand while avoiding excessively high APYs for early stakers. A target yield of approximately 5% APY is considered attractive for gold owners. Based on this target and current token prices (0.02 $/GOLDAO and 1.1 $/GLDT at the time of writing), projected GLDT staking amounts can be determined based on varying GOLDAO neuron sizes.
The provided data illustrates the required GLDT stake to achieve a 5% APY at different GOLDAO neuron sizes and price points (ranging from 0.01 $/GOLDAO to 0.05 $/GOLDAO, representing the token's price range over the past six months).
At the current price of approximately 0.02 $/GOLDAO and a GOLDAO neuron size of 10 million GOLDAO, approximately 1.2 million GLDT would need to be staked to achieve a 5% APY. If fewer GLDT are staked, the APY will be proportionally higher. Given the current total GLDT supply of approximately 600,000 GLDT, introducing GLDT staking with a 10 million GOLDAO neuron is expected to significantly increase supply.
It is important to note that establishing a neuron with significant voting power (VP) will reduce staking rewards for other GOLDAO stakers. Currently, the APY for staking GOLDAO and receiving rewards in GOLDAO, ICP, and OGY is approximately 30%. Introducing a new neuron dedicated to GLDT staking will lead to a reduction in rewards for existing neurons. The total VP of all GOLDAO neurons is approximately 600 million, derived from approximately 360 million GOLDAO staked with varying dissolve delays and age bonuses. Introducing a new neuron locked for two years could lead to a maximum reduction of staking rewards to approximately 20% if 100 million GOLDAO are staked in such a neuron. This reduction must be weighed against the benefits of GLDT staking.
Adoption: GLDT is in its nascent stages and requires increased demand to bootstrap growth. GLDT staking will stimulate demand, reduce liquid supply, and necessitate further GLDT minting, thereby increasing total supply and total value locked (TVL). This will elevate GLDT's visibility and drive natural adoption.
GOLDAO Token Value: GLDT transaction fees (0.1 GLDT per transaction) are used to buy back and burn GOLDAO, increasing buying pressure and reducing supply. Increased adoption will lead to more transactions and subsequent buyback and burn activities. GLDT staking is one of several initiatives designed to drive adoption, with USDG launching later this year.
As outlined in the, 200 million GOLDAO from the treasury have been allocated for the growth of Gold DAO's products, including GLDT and USDG. The dedicated neuron for GLDT staking will be funded from this allocation.
