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 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

Note: Additional technical rigor is required to validate the feasibility of the proposed

• Mechanics

  • JuiceboxDAO members stake JBX for an ERC 1155 NFT - the NFT will be called the 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:

  The following is a high level implementation methodology for Staking in the Juicebox ecosystem. This mechanics should come as an "out of the box" solution to all DAOs operating on the Juicebox protocol.

  

• Additional specifications

  • Bennys will be minted automatically as JBX is staked and will be based on a set of pre made svg Benny components. s
  • Every cycle (year) the minted Bannys will have a new visual design, but will maintain similar technical functionality as previous Bannys
    • Example 1: DAO member who in the first “Banny cycle” staked the max JBX tokens for 4 years (top category) will receive the most rare Banny. That Banny will carry full governance capabilities for 4 years without the need to re-stake
    • Example 2: DAO member who in the first Banny cycle staked the min JBX tokens for 1 year (lowest category) will receive the least rare Banny. That Banny will carry governance capabilities for 1 year. The DAO members will have to un-stake their tokens after 1 year and re-stake in the new Banny cycle receiving a new Banny
  • Voting power that is assigned to each Banny will not decay like that veCRV system does.
  • 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).
  • If the stake period (vote locking period) expires naturally, the NFT will remain but will have no voting power.
  • If the staker “rage-quits” and forcibly unstakes their JBX during the vote locking period, an unstaking penalty of {x%} JBX will be applied and the NFT will be burned.
  • Key design advantages vs plain veJBX design
    • Innovative and design oriented. Gives the DAO the ability to further evangelize the ecosystem through NFTs
    • Have cultural and artistic characteristic
  • 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. Additional discussions are needed to finalize the benefits.
  • Voting - only JBX token stakers are able to vote in JuiceboxDAO governance proposals
  • 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 larger weights in the Governance process
• 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
• Web3 composability - provides an open ended framework that enables other Web3 protocols to build with staking and ranking tools
• Base layer separation - separating the core Juicebox Mechanism from the staking contract
• Additional network effects - further enhancing JBX token network effects through new economy and mechanism

Staking Risks

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