When the StrongBlock DeFi protocol launched just one week ago today, on September 29, 2020, several issues became immediately clear.
- Rewards for pre-launch STRONG holders were too low for their considerable skin in the game
- Rewards were too high for ETH and LINK miners
- Lockup times for rewards were out of sync with risk and participation
- The governance model did not allow for rapid adjustments to fix 1–3
We made some mistakes. We’re rapidly making changes to address them. These include making governance flexible and agile, rewards harder to earn, and introducing deflation.
Our pre-launch STRONG holders will get an exclusive pool with a multiplier, along with the ability to earn access to a new ETH fees pool.
The first action we took was to propose new code making all rewards and lockups adjustable. We can begin to balance rewards once this goes into effect early Friday morning PDT on October 9, 2020.
This code proposal addresses the first 3 issues above. It also enables Node rewards — our “DeFi with a Purpose”. However, this action is taking a long time to implement due to the governance parameters of the protocol, and we never want to run into this problem again.
So, with considerable input from the STRONG community, we determined that radical changes must be made in order to honor pre-launch shareholders, restore confidence in the protocol, attract new users, and bolster our “DeFi with a purpose” mission.
Introducing Version 2
Since launch day, we have been designing and building Version 2 (V2) of the protocol. V2 is a fork of Version 1 (V1), and will continue to use STRONG as its governance token.
V2 will provide the ability to rapidly change, modify, and add rewards; and balance multipliers, transaction fees, timelocks, inflation and deflation for any given pool. This will enable the protocol to be agile and flexible in order to address the needs of the community, always in a timely manner.
We believe V2 addresses vital concerns, especially those voiced by the pre-launch community, while extending the protocol for ease of future development. V2 will use the same interface as V1, allowing for a smooth migration when launched.
Same App, same user interface, with easy migration from V1 to V2
- Rewarding miners based on “skin in the game” with multipliers
- Highest multipliers will go to pre-launch STRONG holders in an exclusive pool, whitelisted by wallet forensics currently underway
Switching to Liquidity Pool (LP) tokens as the primary means for mining
- STRONG-ETH and STRONG-LINK LP tokens will be supported for mining in the protocol
- This enables an easy transition of already-earned Ethereum Community rewards into a shared liquidity model, while decreasing volatility
- Migration to the LP pools by ETH and LINK miners — who have contributed nearly $12m in Total Value Locked (TVL) to the protocol — will allow them to earn access to the ETH fees pool
- Easy steps will be provided on how to use your ETH, LINK and STRONG to create LP tokens for mining more STRONG
- ETH and ERC-20 mining will not be immediately supported in V2. When added, they will have lower multipliers and higher fees
Fully adjustable governance, including reduced proposal and voting timeframes, with a probationary period for the young protocol
Deflation and reduced inflation
- Deflationary measures (token burns) for actions in the protocol
- Possible deflationary measures (supply reduction) outside the protocol
- Reductions in rewards
- Increases in holding times necessary to qualify for rewards
- Adjustable multipliers
The addition of ETH-based transaction fees for entering and exiting pools
- A percentage of transaction fees will go to a new ETH Fees pool you can mine to receive rewards in ETH
- Eligibility for the ETH Fees pool is long-term participation in one of the mining pools, including the exclusive pre-launch holders pool
- Once you’re eligible, ETH rewards will be claimed by burning STRONG
The initial release of V2 will form the basis of a more flexible protocol to which features will be added constantly, based on community input.
To everyone, and especially our pre-launch holders: Thank you for participating in the protocol up to this point. We will keep pushing to better the protocol for the community.