What is Governance staking?

To incentivize participation in Iron Finance governance, we are introducing the BlueICE Governance staking model and ecosystem profit-sharing. In other words, ICE can now be staked (locked) to receive fees from the Iron Finance ecosystem. BlueICE is inspired by the governance concept of Curve's veCRV token model, which has the best token design in the industry for long-term holders. It encourages long-term staking and active community involvement through unbiased governance.
The idea behind locking is to empower long-term committed investors to take decisions that benefit the long-term future of the platform. This is also why we reward investors committed to longer lock with more voting power (more BlueICE).

Steps for BlueICE staking

  1. 1.
    Lock ICE tokens to receive BlueICE token
  2. 2.
    Stake BlueICE and receive ecosystem profits in USDC
  3. 3.
    Note: You can choose to lock in BlueICE between at least 7 days and up to 3 years. The longer you stake ICE, the more BlueICE you will get.
Example: - As written above, the maximum duration to lock is 3 years (1095 days) - If you lock 100 ICE for the max duration (1095 days), then you will get 100 BlueICE - If you lock 100 ICE for a shorter duration, say 100 days, then you will get: 100 ICE * (100 / 1095) = 9.13 BlueICE
Trading of BlueICE, while technically possible, is not practical. Unlocking needs to happen through wallet addresses that staked in the first place. There will be no real demand to buy BlueICE but rather mere circulation of BlueICE between those addresses who locked them for exchange of intermittent liquidity. Therefore, it is encouraged to lock ICE tokens to receive BlueICE tokens, instead of buying BlueICE tokens.

Early Exit Penalty

Unstaking BlueICE before the lock-in period ends incurs an early exit penalty of 30%. The early exit penalty effectively burns ICE immediately. Why is a high penalty important? If governance allowed easy unlocking, anyone can temporarily lock ICE to influence a decision and afterward divest from the platform. The veCRV mechanism doesn't allow to unlock governance token prematurely. However, the team at Iron Finance thought to offer more flexibility to investors. Therefore, unlocking is allowed with a penalty of 30% on the staked amount.
In order to unlock ICE again, users will need to use the exact amount of BlueICE required.
Last modified 5mo ago