Dear Chaotic Community,
It has come to our attention that CHAOS weekly rewards have grown considerably over the past months. This is due to the fact that not many users are claiming their rewards and Rollover Staking Rewards (RSR) now account for a significant amount of total rewards.
Using the latest weekly rewards (week 36) as an example:
As we can see, from current weekly rewards, RSR makes up 88% and Scheduled Staking Rewards (SSR) only make up for 12%. In order to ensure rollover rewards are claimed and to curb $CHAOS inflation, we seek to reduce the SSR and allow greater claims of the RSR.
Starting from Wednesday, November 9, SSR will be reduced by 50% temporarily until more users can claim weekly rewards and RSR decrease. Using the previous example the new weekly rewards would look like this:
When reducing SSR by 50%, the change in terms of Total Staking Rewards (TSR) is minimum. In the example from week 36, TSR changed from 1,210,443 CHAOS to 1,137,719 CHAOS or a decrease of 6.4%. This change will have minimal impact on staking APY, 106% → 100%, rewards and will slow down inflation pressure on CHAOS.
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.