Important Update: Scheduled Staking Rewards Emission Suspension
Dear Chaotic Community,
Two months ago, in February 2023, the Scheduled Staking Rewards (SSR) emissions were reduced by 50%. The measure was taken in response to the fact that the bear market caught many participants by surprise and left many users of the platform with a P-ratio below 500, thus rendering them unable to claim weekly rewards. Over the past few months, we have seen low trading volume (close to 0) on Chaotic Finance. This led to the accumulation of unclaimed rewards and the Rollover Staking Rewards (RSR) grew from a few thousand $CHAOS to today’s number which stands above 800,000 tokens.
From Week 59 onwards (April 12th, 2023), Scheduled Staking Rewards will be temporarily suspended until we see a significant increase in volume on the Chaotic Exchange and also have more users claim their weekly rewards that will only be made up of Rollover Staking Rewards for the time being.
Week 58 Rewards
As can be seen from the table above, at 95.47% the RSR continues to make up the majority of the Total Staking Rewards (TSR) and Scheduled Staking Rewards (SSR) only make up 4.53%. In order to ensure rollover rewards are claimed and to curb $CHAOS inflation, we seek to suspend the SSR emissions and allow greater claims of the RSR.
Starting from Wednesday, April 12th, SSR emission will be temporarily suspended until more users claim weekly rewards and the RSR decreases. Using the previous example (week 58’s rewards) the new weekly rewards would look as follows:
When suspending SSR emissions, the change in terms of Total Staking Rewards (TSR) is minimal. In the example from week 58, TSR changed from 870,202 $CHAOS to 830,819 $CHAOS or a decrease of 4.74%. This change will have minimal impact on staking APY, 52.30% → 49.94%, rewards and will significantly slow down inflation pressure on $CHAOS.
While the temporary suspension in SSR will have minimal effect on the staking APY active users earn, until we see a reduction in RSR, the impact on $CHAOS inflation from the SSR will in fact be reduced to 0, thus slowing the increase of $CHAOS in circulation.
As a final note, please be advised that these changes affect only the $CHAOS part of staking rewards, $cUSD staking rewards remain unchanged.
As always, if you have any questions please feel free to reach out to any of our support admins on our Discord server.
Thank you for your understanding,
Chaotic Finance Team
About Chaotic Finance
Chaotic is a community-driven delta one asset protocol on the Kusama network via Moonriver. Chaotic allows its users to get exposure to various synthetic assets by letting them trade long and short positions with up to four times leverage.