Once you have collected your WYND tokens, from airdrop or purchase on an AMM, you will most likely want to stake them to participate in the WYND DAO. This is similar to staking in other DAOs or PoS chains, WYND has done a lot of innovation in this area, heavily inspired by Curve’s veCRV model.
The main difference is there is not one unbonding_period, but multiple “buckets” you can stake on. Each has a different unbonding period, voting power, and level of rewards. If you have staked LP shared on the Osmosis app, you probably got the idea… the longer you stake your LP, the more rewards.
WYND is all about long-term growth and sustainability and we wish to encourage commitment to the protocol. Especially when it comes to who is making the governance decisions to encourage longer-term planning over short term profit seeking. Thus, we have relatively large unbonding periods compared to most chains. Here are the possibilities and the relative power they have:
Voting and rewards signify how much voting power you get per $WYND staked, or how many shares of the staking rewards you get for each $WYND staked.
You can see how both the rewards grow linearly for the first 6 months. If you want to maximize rewards with a reasonable level of liquidity, 6 months is your target. Beyond that, the rewards grow slowly, while the voting power keeps growing linearly. We only expect those truly committed to long-term growth of the protocol, with a large interest in governance participation to lock in for 1 or 2 years.
When you bond tokens, you select the bucket you wish to stake into, with the corresponding priviledges and unbonding period. You can always start unbonding your tokens in any bucket (all or part) to start the process of recovery. You will immediately get a claim with a maturity date for those tokens. Until the unbonding period has passed, those tokens remain locked in the staking contract, but don’t provide voting power or rewards. Once it has passed, you can claim them at any time, returning those tokens to your wallet.
We know that unbonding for 2 years, or even 6 months, with no rewards at all during that time sounds like a very scary prospect. For this reason, we have created a new innovation called “rebonding”. Like it sounds, it allows you to immediately move your tokens from one “bucket” to another without fully unbonding first.
If you originally bonded for 1 month, but then became a true believer in WYND, no fear, you can immediately move it to any bucket with a longer duration and collect these rewards. Move it to 3 months, and after you gain more confidence, just move it up to 6 months; each time enjoying the increased priviledges.
For many, the more interesting rebond is to shorter time periods. You can rebond from say 6 month to 3 months. Immediately, those tokens will provide voting and reward power equal at the 3 month levels. However, they cannot be immediately rebonded again. For the time difference between levels (in this case 6 - 3 = 3 months), they are locked at that new level and cannot be rebonded or unbonded.
This provides a nice path for gradually unstaking tokens for long-term stakers. If you put 100,000 $WYND in the 1 year bucket, but decide you want to use some of it, you can first rebond say 50,000 $WYND to 6 months. You keep earning significant rewards on those tokens for the next 6 months. After that time has passed, you can rebond those 50,000 $WYND to 3 months. 3 months later, to 1 month. And 2 month later, you can fully unbond.
This let’s you unstake longer positions, while continuing to receive rewards proportional to your commitment during the unbonding period if you plan correctly.
Note: once you start unbonding there is currently no way to change that to a rebond.