Staking & DAOs

Learn how to stake tokens, participate in DAOs, and create proposals on Meme Dealer

What is Staking?

Staking on Meme Dealer allows you to lock up your tokens for a period of time to gain voting power in DAOs (Decentralized Autonomous Organizations) and gain token rewards on a daily basis. When you stake tokens, you’re contributing to the governance and decision-making process of the token’s community.

Key Benefits of Staking:

• Voting Power: Each staked token = 1 vote in DAO proposals
• Community Governance: Participate in important decisions about the token’s future
• Reward Eligibility: Potential benefits from forfeited tokens when others unstake early OR unvest early

How Staking Works

Staking Process

1. Choose Your Tokens: Select any token you hold to stake
2. Set Duration: Stakes are locked for 3 months by default
3. Confirm Transaction: Your tokens are moved from your available balance to staked balance
4. Gain Voting Power: You can now vote on proposals for that token’s DAO

You need at least 1 whole token staked to participate in voting on proposals.

Early Unstaking Penalties

If you unstake before the 3-month period ends, you’ll face penalties:

• Penalty Calculation: The earlier you unstake, the higher the penalty
• Forfeited Token Distribution:
  • 20% goes to REX token stakers
  • 50% goes to other stakers of the same token
  • 20% goes to the DAO treasury
  • 10% is permanently burned

Early unstaking can result in significant token loss. Plan your stakes carefully!

Adding to Existing Stakes

If you already have tokens staked, you can add more tokens to your existing stake. The system uses pro-rated expiration dates to fairly calculate when your combined stake will expire.

Understanding DAOs

Every token on Meme Dealer has its own DAO (Decentralized Autonomous Organization). DAOs are community-governed organizations where token holders make decisions collectively.

DAO Features

Each DAO has:

• Treasury: Holds BTC and the DAO’s native token
• Governance Settings: Rules for proposals and voting
• Proposals: Community suggestions for changes or funding

DAO Configuration

DAOs have several configurable parameters:

• Vote Requirement: Minimum staked tokens needed to create proposals (default 0.5% of total supply) - If a DAO votes to lower this then they are lowering the barrier of entry to create proposals - inviting more activity (and potentially spam) into a DAO
• Proposal Length: How long voting periods last (default 24 hours) - This is a very short voting period for new tokens to incentivize fast paced activity. DAOs can vote to change this at any time through a proposal
• Participation Requirement: Minimum percentage of stakers that must vote for a proposal to pass
• Chat Requirement: Minimum tokens needed to participate in discussions

Creating Proposals

Stakers can create two types of proposals:

Configuration Proposals

Change how the DAO operates:

• Update DAO name or description
• Modify voting requirements
• Change proposal duration
• Update participation thresholds
• Modify token images/banners

Funding Proposals

Request funds from the DAO treasury:

• Request BTC or the DAO’s native token
• Specify recipient wallet address
• Set funding amount and purpose
• Must have sufficient treasury funds

You can only have one active proposal per DAO at a time.

Voting on Proposals

Voting Requirements

To vote, you must:

1. Have at least 1 token staked in the relevant DAO
2. Your stake must not be expired
3. You haven’t already voted on this proposal

Voting Options

• For: Support the proposal
• Against: Oppose the proposal
• Abstain: Participate without choosing a side

Voting Power

Your voting power equals your total staked tokens. If you have 100 tokens staked, you have 100 votes.

Proposal Finalization

Proposals are automatically finalized when their voting period expires:

Success Criteria

A proposal passes if:

1. Participation: Enough stakers participated in voting
2. Majority: More “For” votes than “Against” votes
3. Treasury: Sufficient funds available (for funding proposals)

Automatic Execution

Successful proposals are automatically executed:

• Config changes: Applied immediately to the DAO
• Funding transfers: Tokens sent to recipient’s wallet
• Failed proposals: No changes made

Getting Started with Staking

Step 1: Navigate to Holdings

Visit your Holdings page to see all your available tokens. (Alternatively use the search bar to search for a token)

Step 2: Select Tokens to Stake

Click the “Stake” button next to any token you want to stake.

Step 3: Enter Amount

Choose how many tokens you want to stake (you can stake partial amounts).

Step 4: Confirm

Review the 3-month lock period and confirm your stake.

Step 5: Participate in Governance

Visit the DAO page for your staked token to view and vote on proposals.

Best Practices

Plan Your Stakes: Remember the 3-month lock period and early unstaking penalties.

Stay Engaged: Regularly check for new proposals to maximize your governance participation.

Understand Proposals: Read proposal descriptions carefully before voting.

Recipient Validation: When creating funding proposals, ensure the recipient address is a registered wallet on Meme Dealer.

Frequently Asked Questions

Q: Can I stake multiple different tokens? A: Yes! You can stake any tokens you hold, and each gives you voting power in that token’s DAO.

Q: What happens if I lose my voting power? A: Voting power comes from staked tokens. If your stake expires or you unstake, you lose voting power until you stake again.

Q: Can I change my vote after submitting? A: No, votes are final once submitted. Choose carefully!

Q: How do I know if a proposal passed? A: Proposal status updates automatically when voting ends. Check the DAO page for results.

Q: What if a DAO treasury doesn’t have enough funds? A: Funding proposals will fail automatically if insufficient treasury funds are available.