DAPG – Citizen42

Research and Discussion
1

Identifying Title: Dynamic seVLR Staking: Removing Lock-Up, Boost Participation and Retain Commitment
DAO-recognized name: Citizen42
Individual or Organization?: Individual
Twitter handle: @mcitizen42

Details of the Idea

This idea proposes an upgrade to the current seVLR staking mechanism by removing the fixed 30-day lock-up period, replacing it with a progressive reward accrual model.

Under the new model, stakers would be able to unstake at any time, but earn only 50% of the effective APY during their first 30 days. After 30 days of continuous staking, they would automatically unlock full APY eligibility.

This approach aligns incentives around participation and commitment, without penalising flexibility.

It maintains staking demand while improving the user experience, especially for newer users who may be hesitant to commit to long lock periods.

How This Helps VLR Growth

  • Encourages participation: Removing the lock, lowers entry friction and attracts new stakers.

  • Protects long-term alignment: The reduced initial yield keeps incentives balanced, only committed participants receive full returns.

  • Potentially reduces sell pressure: With the Gas Refund Program discontinued and less theoretical sell pressure of those VLR given as gas rebates along side no lockup users might feel inclined to continue staking for as long as they earn, being at ease with staking methodologies. This also stems from the fact that the lock-up period was primarily a stability measure during reward distribution, no longer necessary under current conditions.

  • Supports DAO maturity: Simplifies staking logic, aligning Velora with current DeFi trends of flexible staking and real yield accrual.

Mapped KPIs / Expected Impact

  • +20% increase in staked VLR within 60 days of change.

  • Improved retention rate: Average staking duration of new seVLR participants >40 days,

  • Higher user satisfaction: Measured via DAO survey/engagement metrics (Snapshot participation, forum activity, increase seVLR holders ).

Preliminary Feasibility Assessment

This proposal requires only minor logic adjustments to the new stakers reward accrual mechanism and a simple disable lockup period from @Laita , no overhaul of seVLR contracts.
Implementation can be handled by @WakeUpLabs and Laita within the existing staking and distribution system.

Governance logic (Snapshot & oSnap) remains fully compatible.

Implementation Overview

  1. Modify reward distribution rules:

    • Introduce a “warm-up” period: first 30 days = 50% reward rate.

    • After 30 days, automatic eligibility for 100% APY.

  2. UI / UX update:

    • Clear staking dashboard indicator showing progress toward “full yield status.” (nice to have)

  3. Monitoring:

    • Report impact metrics at 30- and 60-day intervals post-launch.

VLR and Other Token Amounts Involved

No new funding required. Rewards remain part of the standard staking pool.

Technical Development / Additional Resources

Minor smart contract update + frontend logic refresh.

Estimated workload: ( TBD ) Distribution logic adjusted on WakeUp Labs side to account for T-30 for 100% rewards distribution and Laita coordination to disable lockup, both potentially requiring 1 week to confirm feasibility and implement.

Associated Costs or Budgets

Covered under existing operational budgets for staking infrastructure/ rewards distribution.

Who Should Be Involved

  • WakeUp Labs: Implement accrual adjustment.

  • Laita: Disable lockup period.

  • VGC/GTF/Delegates: Verify reward distribution post-change and communications of new methodology implemented.

Conclusion

This adjustment simplifies staking, has a high opportunity to boosts participation and modernises Velora’s token economics while maintaining the integrity of long-term alignment.
Removing the lock-up period makes the system fairer and easier to use, perfect timing now that the Gas Refund Program is being discontinued and the DAO is focusing on growth and adoption.

A simple, low-risk improvement with high potential upside for participation and new holders to enter our ecosystem.

2 Likes
2

I like this idea, but wanted to suggest a few items for consideration:

Usually, the locking mechanism is a safety buffer related to the price action of the token (so stakers trade the freedom of selling their token when they want for the staking yield). Give-up of this completely may introduce undesired effects, especially because it would remove liquidity from VLR pools.

I believe we could introduce a instant unlock fee for those that don’t wnt to wait for the 28 days cooldown period. That could follow a linear rante, maybe starting at 30% and going to 0% after the 28 days (open to different numbers). That would add flexibility while somewhat protecting it from these effects.

3 Likes
3

At first, I would like to restate the primary goal of DAPG, which is to discuss ideas that support the growth of the $VLR token.

Regarding the Staking Module: I am in favor of completely changing the current staking model to improve the utility of the $VLR token. However, the suggested changes do not contribute significantly to the growth of $VLR. As you mentioned, the proposed adjustments are minor, and I do not believe they would be effective in any meaningful way. I would prefer to either keep the current model or implement more substantial changes.

4

Thanks @Mehdi appreciate the feedback and comments.
The initial idea came from few users that complained to me on X that they would consider staking but the locking period gives them wrong vibes. I am sure there are many more out there.

The way I see it, the milestones set under DAPG actually help frame this kind of iteration too. In itself if we can drive an increase in seVLR stakers, that naturally translates into potentially more buyers and/or committed holders and ultimately a stronger underlying demand for $VLR, which in my view does contribute directly to token growth.

A full staking overhaul would definitely be exciting, but realistically, it might not be technically feasible at this stage, especially given we’ve only recently migrated from sePSP to seVLR. For now, smaller optimisations like this one can serve as “low-risk growth levers” that make participation smoother while still aligning with the DAO’s strategic goals.

All those said, I absolutely agree Velora should eventually explore a broader, auto-compounding liquid stToken or even a ve-style staking design that deepens alignment and defi users appetite for money legos and yield participation. This current iteration simply aims to make the system more inclusive while we collectively work toward that next evolution.