Litentry Announcement: Upcoming Changes to Parachain Staking Rewards
Dear Litentry Community,
We are thrilled to introduce an exciting update to our parachain staking rewards system. As the IdentityHub is a cornerstone of the LIT ecosystem, we are enhancing its use and directing more LIT tokens towards IdentityHub users. These rewards will stem from the inflation of the LIT token. Accordingly, we will reduce the annual inflation rate for parachain staking from 1.5% to 1.0%. This initiative marks the beginning of our journey with identity staking, and we are committed to continuing this development.
Key Details:
- Annual Inflation Rate Reduction: From 1.5% to 1.0%
- Effective Date: The change will take effect after proposal passed
- Total Estimated Reduction: Approximately 500,000 LIT tokens annually
Benefiting IdentityHub Users:
The 0.5% reduction in the annual inflation rate, amounting to about 500,000 LIT tokens, will be fully reallocated as an extra staking reward for users possessing an IdentityHub score. This initiative is designed to reaward and incentivize our dedicated community members who actively participate and contribute to the ecosystem. For more information on how to obtain and improve your IdentityHub score, please visit our product page IdentityHub.
Next Step:
In this proposal and all the following quarters, we will propose the minting of a reward budget. The funds from this budget will be relocated to our IdentityHub staking pallet address, which is responsible for updating users' IdentityHub scores and distributing the additional rewards.
Thank you for your continued support and engagement with Litentry. Stay tuned for more updates.
Best regards,
The Litentry IdentityHub Team