Summary

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

Abstract

Token staking is an incredibly flexible mechanism to provide utility to token holders while aligning incentives between all stakeholders in a DAO. With the rise of DeFi, staking has been popularized by high APYs and short term value accrual of financial benefits (sometimes perceived as engagement) to token holders vs. longevity of the ecosystem as a whole.

Over the last 6 months Juicebox has grown into a vibrant community oriented around culture. Communities such as MoonDAO, SpiceDAO, and ConstitutionDAO are clear examples to that. This is an important fact to account for when considering adding staking into the Juicebox protocol and ecosystem.

The following document will help outline the initial proposal to introduce staking to the Juicebox ecosystem. The goal is to create a flexible model that can enable use cases that span across governance, culture, and DeFi, however start from a simple NFT focused go to market.

Motivation

• The following are some of the key areas where the JuiceboxDAO can derive value from adding Staking to its mechanism:
  • Utility to the JBX token evolving the JBX token beyond a membership and governance token to have a tangible use within the Juicebox ecosystem
  • Giving JuiceboxDAO members tools and incentives for long term support of the ecosystem
  • Staking out of the box creating a generalized staking system that can be deployed by DAOs building on Juicebox and applied to a wide variety of areas

Staking Mechanics Specifications

• High level Mechanics overview

  • JuiceboxDAO members stake JBX for an ERC 721 NFT - the NFT will be branded by WAGMI studios. For the purposes of this proposal the NFTs will be referred to “Juicebox Banny”
  • Each Banny will have assigned voting power to it according the the number of JBX staked
  • Voting power is represented within the Juicebox Banny NFT using metadata
  • The following is a example of the Banny minting thresholds:

  

Base contract functionality (based on the staking lifecycle)

• The following should provide an overview of how Banny NFT holders will be able to interact with the NFT with the initial contract:
  • Minting -
    • All wallets staking JBX will be able to mint Banny NFTs based on a duration of the staking and the number of JBX staked
    • Every JBX staker will receive a token with a corresponding art (Bannys!!!!)
  • Utilizing -
    • Banny NFT holders will be able to vote on JBX proposals according to the amount of JBX they staked
      • Note: The main staking contract will not have a time decay functionality (like that veCRV system does)
  • Transferring/Selling -
    • Banny NFTs can be transferable (e.g., could be sold on the open market), along with the claim to the staked JBX (if it exists)
  • Burning -
    • Not available
  • Expiration -
    • If the stake period (vote locking period) expires naturally, the NFT owner will have have the ability to burn the NFT and receive the staked JBX back
• Note: The staking mechanics are not providing an overview of staking benefits. The benefits can be determined by each DAO and implemented separately

Staking incentives in JuiceboxDAO

• The following are options of high level benefits that can be provided to JBX token stakers by the JuiceboxDAO through secondary contract. Additional discussions are needed to finalize the benefits:

  • Governance - additional governance benefits for various staker categories:

    • All JBX token stakers will be able to vote in JuiceboxDAO governance proposals; e.g., “just” hodling JBX will not give you voting power

      Note: this benefit is included in the initial contract

    • DAOs that are building on the Juicebox Protocol and stake their JBX tokens (ones they bought or received in return for protocol fees) will receive a higher staking incentive (e.g., automatically upgraded to a category 1 level higher)

    • Adding a Time decay model (”ve” like) where JBX holders staking for a longer period will have a higher governance power

  • Cultural Growth - JBX stakers will be able to receive JBX focused NFTs

    Note: this benefit is included in the initial contract

  • Project Sponsoring - JBX stakers can "allocate" votes to DAOs that are operating on JBX. These stakers can be defined as "Sponsors"

    • Fee Discounts - DAOs with total X votes allocated to them or a % of total staked JBX will be eligible for a discount in JBX protocol fees
    • Project Visibility - DAOs with total X votes allocated to them or a % of total staked JBX will be featured on the Juicebox.money front end
    • Note: we see a scenario where project sponsors receive compensation for their votes from the project that they sponsored

  • JBX Yield - JBX stakers can receive JBX/ETH yield on their tokens based on JuiceboxDAO protocol usage (could be generated from JBX received by the treasury from the reserve rate)

Staking Benefits

• Rewarding long term participation - rewarding stakers by providing them with an ability to participate in Governance process (or even a more significant weight)
• Building an identity - by providing an NFT against staked tokens, DAOs can further enhance the sense of identity and relatability among community token holders by that further building the “identity” (or brand) of the DAO
• Creating a new economy through “Sponsor” functionality - help develop 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)
• 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