Unifi has reached out to the UNFI token holders for community governance, seeking guidance regarding the matter of increasing the maximum capacity of UNFI that can be staked. The referendum comes after several requests from the Unifi community to increase the maximum amount that can be staked.
Maximizing community Governance
Unifi Protocol has several announcements regarding the governance of the protocol that it will reveal in the coming weeks. However, the referendum to decide whether Unifi should increase the maximum number of UNFI that can be staked gained the largest community engagement that Unifi has done to date.
The Unifi Protocol has a highly active community of UNFI DAO governance token holders that actively votes on essential topics related to the protocol.
A Little Context
UNFI staking on Ethereum started on the 1st of January 2021, when 500,000 spots were made available for UNFI token holders to stake their tokens. Before long, all the stake spots were taken by token holders, locking up a significant chunk of the circulating supply of UNFI tokens into staking.
When UNFI staking reaches maximum capacity, The APR on staking becomes higher for all stakers. Initially, At maximum staking capacity, an APR of 40% was offered. Since UNFI referendums were not something that had been created yet, Unifi got a significant number of requests through social media to increase the maximum amount of UNFI that can be staked. Unifi listened to its community and increased the maximum staking capacity to 600,000. With the increase, the APR at the maximum staking capacity was adjusted to 36%. UNFI does not require staking to be a part of its governance, allowing its staking structure to offer significantly higher staking rewards than other tokens.
The Case For Increased Capacity
UNFI staking has almost always been full over the past few months Another factor to consider is that by the end of September, Unifi’s acquisition of the $8M market cap SEED project will be complete. Raising the staking limit will allow new UNFI token holders to be a part of Unifi’s staking process.
Unifi Labs To Explore New Ideas In Blockchain
Unifi Protocol has announced the launch of Unifi Labs. Unifi Labs will look into exploring and developing new ideas when it comes to blockchain technology and innovation. It will also address the challenges that the blockchain industry currently faces. Unifi Lab’s primary focus will be on research, experimentation, blockchain education, and innovation. It will achieve this by partnering with consultants, community members, contractors, students, and an active developer community.
Unifi is aware of the importance of referendums, allowing UNFI holders to have their say in managing many aspects of the whole DeFi ecosystem. With a number of referendums in the pipeline, Unifi’s community are active participants in the governance of the protocol.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
