After the successful completion of our Cosmos and Kava StakeDrop campaigns, the third StakeDrop campaign on Terra (LUNA) will be launched on 19th December 2020!
‘Third time’s the charm’, as they say, and we can’t wait to begin spreading the magic to LUNA stakers!
Magic Transactions to register participation in the Terra StakeDrop will go live on 17th December. LUNA holders can stake their tokens on the Terra network with any active validator to earn XPRT tokens in addition to the staking rewards.
Terra is a price-stable and growth-driven stablecoin project.
Key Terra StakeDrop Details:
- Total rewards: 100,000 XPRT ($25,000 based on the latest valuation)
- Campaign duration: 25 days
- Start date and time: 19th December 2020, 12:30 PM IST (Block Height: 1030101)
- End date and time: 13th January 2021, 12:30 PM IST (Block Height: 1363850)
- Magic Transaction start date and time: 17th December 2020 (Block Height: 1003400)
- Average blocks per day: 13350
- Network Rewards Pool: 80,000 XPRT
- AUDIT.one Rewards Pool: 20,000 XPRT
Read below for a full run-down👇
First Things First: What is Persistence and XPRT Token?
Persistence is an interoperable protocol built to facilitate the creation of next-gen financial products powered by blockchain. The Persistence tech stack provides the infrastructure to effectively bridge the realms of DeFi and traditional financial in a variety of areas, whilst also enabling the creation of innovative crypto-facing solutions to expand the DeFi space.
XPRT will carry a variety of use cases within the Persistence ecosystem, including participating in staking to contribute to network security, and community governance of the Persistence mainchain.
As a ‘work’ token, XPRT will also accrue value in direct correlation to increased financial activity within Persistence’s ecosystem dApps.
Remind Me, What is StakeDrop?
StakeDrop is a token distribution mechanism designed to facilitate the wide distribution of XPRT to token holders of prominent PoS blockchains. Participants will receive XPRT tokens simply by staking on their favourite network/s.
StakeDrop has been meticulously designed to be much more than a conventional airdrop; it’s an experience that benefits all parties involved.
There will be a total of seven StakeDrop campaigns. We’ve already successfully concluded our campaigns on Cosmos and Kava, and the third campaign is taking place on Terra (LUNA).
Terra (LUNA) StakeDrop Campaign Overview
100,000 XPRT tokens (worth $25,000 based on the latest valuation) have been allocated for distribution amongst Terra (LUNA) stakers through StakeDrop.
All Terra (LUNA) holders are eligible to participate in StakeDrop by simply staking LUNA tokens on the Terra network with any of the validators on the Terra chain. The Magic Transaction must also be sent to register participation (see below for details).
Why Choose Terra as a StakeDrop Network Partner?
As interoperable Tendermint-based blockchains, Persistence and Terra both understand the value of collaboration for fueling innovation. Terra is one of our long-standing ecosystem partners and we envision much deeper collaboration moving forward.
There are strong synergies between Persistence and Terra on an application level. In addition, Terra’s suite of stablecoins will be used in Persistence’s ecosystem products.
As ardent supporters of Terra, we also want to see the Terra network get stronger and have the best possible network security through a higher staking ratio. StakeDrop has proven very effective for Cosmos and Kava in terms of increasing their staking ratio, and we wish to replicate this for Terra in order to help increase the strength of the Terra network.
As a LUNA Holder, Why Should I Participate in StakeDrop?
StakeDrop provides a mechanism for LUNA holders to receive an allocation of XPRT in an almost risk-free manner whilst retaining their LUNA holdings. What could be better?
- There’s no need to give up your precious LUNA to receive an allocation of XPRT! Conventionally, if a token holder wanted to secure an allocation of a different token, they would often have to liquidate some of their current holdings to raise the capital to do so. With StakeDrop, LUNA holders can stake their LUNA to receive XPRT token while retaining their original LUNA holdings.
- (Near) zero principal risks. The StakeDrop is one of a few ways people can get exposure to a promising project like Persistence without any principal risk. The only risk delegators undertake is that of the delegators’ validator nodes getting slashed for downtime, or double signing (this is a risk of the staking mechanism in general).
- It’s non-custodial in nature. Delegators retain custody of staked assets at all times (unlike the Edgeware Lockdrop where assets were locked up in a smart contract).
How will this Benefit the Terra Network?
By providing a way for LUNA holders to gain access to XPRT tokens via staking on Terra, StakeDrop engages LUNA holders and incentivizes them to contribute to the security of the Terra network.
- The ability for LUNA holders to earn XPRT tokens at near-zero principal risk incentivizes token holders to stake their LUNA on Terra, thus strengthening the security of the network (the higher the staking ratio, the higher the security).
- Campaigns such as these reward long-term token holders and stakers of LUNA tokens by giving them exposure to new projects like Persistence without any complications. This is an additional incentive, along with staking rewards, for being a staker on and supporter of Terra.
How Much Could I Earn? Mechanism and Token Distribution Cycle
Every participant can earn a maximum of 5,000 XPRT tokens during the Terra StakeDrop.
XPRT token rewards depend on the number of unique delegators participating in the Terra StakeDrop campaign and their individual stakes.
Our aim is to ensure adequate distribution of the XPRT token amongst all StakeDrop participants at each stage of the campaign. To incentivize early stakers, the distribution mechanism is designed to provide high rewards from the moment the Terra StakeDrop campaign starts.
The number of XPRT tokens dropped per day will remain constant at 100,000 / 25 = 4000.
You can read more about this in the Mechanism Paper here.
As discussed in the StakeDrop Mechanism Paper, there are two pools of rewards:
- Network Rewards Pool: All StakeDrop participants receive their share of XPRT tokens from this pool.
- AUDIT.one Rewards Pool: StakeDrop participants who have staked their assets with the AUDIT.one validator will receive additional XPRT rewards in addition to the rewards received from the Network Rewards Pool.
This incentivizes delegators to stake their LUNA tokens on the AUDIT.one validator.
Therefore, the total rewards for AUDIT.one delegators = rewards from the Network Rewards Pool + rewards from the AUDIT.one Rewards Pool.
Delegators to all other validators will only receive the base rewards from the Network Rewards Pool, and not the additional bonus from the Audit.one Rewards Pool.
You can find more details, including formulas, in our detailed documentation here.
I’m in! How do I Participate?
The participation process is simple. Firstly, you need to be staking LUNA on-chain with any validator on Terra (staking via exchanges does not count).
Then, you need to register your participation by sending a ‘Magic Transaction’ to a specified address, which we will provide via the StakeDrop page of the Persistence website on 17th December (Block Height: 1003400).
Learn about the Magic Transaction here:
Once this Magic Transaction has been successfully sent, you’re all set! You will begin receiving an allocation of XPRT once the StakeDrop begins.
Note: We will release a full Terra-specific tutorial before the StakeDrop campaign begins.
Remember to mark your calendar for December 19th, the start of the Terra network StakeDrop. Get your LUNA staked in advance so you’re ready!
About Terra
Terra is a blockchain network supported by a family of fiat- pegged stablecoins and backed by a native staking and governance token, LUNA.
LUNA, as the native staking asset from which the family of Terra stablecoins derive their stability, utility, and value, acts both as collateral for the entire Terra economy and as a staking token that secures the PoS network. Luna can be held and traded as a normal cryptoasset, but can also be staked to accrue rewards in the network generated from transaction fees. Luna can also be used to make and vote on governance proposals.
About Persistence
Persistence is a Tendermint-based, specialised Layer-1 network powering an ecosystem of DeFi applications focused on unlocking the liquidity of staked assets.
Persistence facilitates the issuance and deployment of liquid-staked stkASSETs, allowing users to earn staking rewards while participating in DeFi primitives, such as lending/borrowing and liquidity provisioning on DEXs.
Persistence aims to offer a seamless staking and DeFi experience for PoS (Proof-of-Stake) users and enable developers to build innovative applications around stkASSETs.
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