Summary

This proposal aims to establish the base staking mechanism for holders of the Ethlizards Genesis V1: 100 NFT collection and the Ethlizards V2: 5050 NFT collection. Staked token holders receive a portion of the DAOs revenue distribution based on the length of time staked.

Abstract

At its core, staking is a new feature that has 2 main goals:

1. Revenue Distribution (Rev Dis) to staked NFT holders.
2. Reduce circulating supply and help stabilize the DAO and community.

The proposed new concept of staking builds off these core principles. Additional concepts will expand upon these values for different value creation for the Ethlizards community.

Locked Lizard NFTs

The Locked Lizard NFT (LLZ) has been built to allow wider integration of the Ethlizards, and improve upon current security concerns, whilst also adding a gamified aspect of staking for holders to enjoy.

LLZ is built off the ERC998 standard, which the popular collection Doodles also uses. In essence, it allows for ERC-721 tokens to own other ERC721s via solidity mappings. With this feature, users are essentially able to swap their NFTs via the contract, however, in this case, it’s adapted for staking.

LLZs also take inspiration from “On1 Frames”, allowing users to freely transfer their LLZs, allowing them more security from wallet breaches, while also retaining a tokenized proof of ownership. This is achieved as staking rewards are tied to the staked Ethlizards NFT Ethereum address, not the tokenID.

• Example: A user stakes an Ethlizards NFTs in their cold wallet and holds their LLZs in a separate hot wallet to sign messages. If that hot wallet gets hacked or compromised, the user can use their Ethlizards NFT in cold storage to recall the LLZ, resulting in no loss of the Ethlizards NFT.

Here’s an example of the proposed flow/architecture.

A user’s LLZ will always be exchangeable for their original Ethlizards NFT via the staking contract.

The Rewards Mechanism

Our rewards mechanism takes into account two major factors.

1. Provide a benefit for early stakers.
2. Provide catalysts and opportunities to allow additional users to join the community and stake.

This is why we’ve chosen to go with a rebasing structure, with a daily rebasing of 0.5% and a soft reset on investment distributions. A user’s rewards are calculated as a percentage of the entire pool. Their percentage pool ownership will be consistently fluctuating due to stakers entering/leaving, daily rebases, as well as soft-resets based on investment distribution.

There are 2 key concepts that are important to the rewards distribution: