A number of users have asked how the Staking Smart Contract works on Sapien. We wanted to provide an in-depth look at this contract and its use cases.
The Staking Contract
The Sapien Staking Contract is deployed on the Ethereum blockchain. This contract is similar to the Sapien Token Contract, except it keeps track of a user’s Staked Token balance. Staked Token balances are tied directly to the address that staked them, and can only be withdrawn to that address. This provides a layer of security for the person who stakes. Tokens in the staking contract are unlocked over a period of one year, but remain staked until a user decides to withdraw them.
To simplify user onboarding, the Staking Smart Contract comes with an autoStake() function, which stakes on behalf of users who enter the network. Once Sapien is able to sufficiently verify a user’s identity and Ethereum address, their account is seeded with an initial stake to allow them to immediately interact with the platform. The AutoStake function is a critical step towards smoothing user onboarding and increasing adoption of the Sapien platform.
A user’s action capacity on the network will be proportional to the amount of SPN they have staked. This means the more SPN that is staked, the more actions that can be made on the network. An action might include creating a post, commenting, or voting on content. It is important to note that staking does not affect a user’s “power” or “influence” in the network.
Capacity is allocated every time an action occurs, and is released when the action period has concluded. Capacity will help align the incentives of users creating content on the Sapien platform and provide a barrier against spam and bad actors.
All rewards on Sapien are delivered in staked form. After rewards are verified for the week, a transaction is sent to the Staking Contract that indicates how many SPN tokens each user has been awarded. Staking ensures that rewards are not withdrawn immediately, making the SPN token economy more stable and ensuring that users are able to properly access and use the Sapien platform.
Combating Bots and Fake News
The Staking Contract also comes with a built-in slashStake() function, which allows Sapien to slash the Stake of malicious players, including bots and spammers, and those disseminating fake news or illegal content. In the future, this functionality will allow communities to self-govern within the Sapien ecosystem.
Users are segmented into Staking Tiers based on the amount of Staked SPN they possess and total SPN circulation. Tiers are updated daily using Sapien’s Adaptive Staking model. Users can view their Staked Tokens, and the Stake required to advance to the next tier, at any time.
Staking Tiers allow us to reach a Staking Equilibrium that best reflects the interest of the network in a platform or protocol. Adaptive staking helps provide stability to the Sapien token economy.
Where is the Staking Contract?
The Staking Smart Contract can be viewed here: Etherscan. Contract code will be open-sourced in the future.