Summary

Evolve the role of the JBX token within the Juicebox ecosystem and improve long term alignment between all stakeholders

Motivation

The following are some of the key areas where a staking mechanism can improve the JuiceboxDAO:

1. Adding utility to the JBX token evolving the JBX token beyond a membership and governance token to have a tangible use within the Juicebox ecosystem
2. Incentivizing long term participation motivating token holders to provide long term support to the Juicebox ecosystem
3. Staking out of the box creating a framework that can be deployed by DAOs building on Juicebox and applied to a wide variety of areas

Staking Benefits

1. Larger Governance Participation - rewarding long term stakers by providing them additional voting abilities in the Governance process
2. Creating a new economy through “Sponsor” functionality ****allowing staked JBX holders to “Sponsors” a DAO by allocating Staked JBX tokens to it. This should help develop of a new economy where DAOs can incentivize “Sponsors” through reserve tokens (resembles Curve bribes) or to build DAOs with the purpose of being staked JBX allocators (CRV<>CVX relationship)
3. Increasing credibility & visibility of new DAOs - JBX stakers provide financial validation for new DAOs that launch on the Juicebox protocol and increase the DAO visibility thorough staking ranking system that can be visible on Juicebox.money
4. Web3 composability - provides an open ended framework that enables other Web3 protocols to build with staking and ranking tools
5. Base layer separation separating the core Juicebox Mechanism from the staking contract
6. Additional network effects - further enhancing JBX token network effects through new economy and mechanism

Staking Risks

1. Minimal early utility - token holders have low initial incentive to stake JBX due to low mechanical utility outside of governance
2. Governance attacks - various actors can acclimate large amount of staked JBX and gain disproportional control of the direction of the protocol