Update: Staking Rewards, Emission Reduction

Dear Chaotic Community,

In November 2022, the Scheduled Staking Rewards (SSR) emissions were reduced by 50% to counter $CHAOS inflation. The measure was taken in response to the fact that the bear market caught many market participants by surprise and left many users of the platform with a P-ratio below 500, thus rendering them unable to claim weekly rewards. 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 close to 1 million tokens.

Week 52 Rewards

As can be seen from the table above, at 92.64% the RSR continues to make up the majority of the Total Staking Rewards (TSR) and Scheduled Staking Rewards (SSR) only make up 7.36%. 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, March 1st, SSR will be reduced by another 50% temporarily until more users claim weekly rewards and the RSR decreases. Using the previous example (week 52’s rewards) the new weekly rewards would look as follows:

When reducing SSR by 50%, the change in terms of Total Staking Rewards (TSR) is minimal. In the example from week 52, TSR changed from 1,069,945 $CHAOS to 1,030,562 $CHAOS or a decrease of 3.68%. This change will have minimal impact on staking APY (excluding $cUSD APY), 77.56% → 74.71%, rewards and will slow down inflation pressure on $CHAOS.

While, the reduction 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 by the full 50% 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.

Website | Exchange |Discord | Twitter | Announcements