IOTA, Shimmer and Assembly Staking Roadmap
The full article was originally published by the IOTA Foundation on blog.iota.org. Read the full article here.
The Path Forward to a Community Incentivizing Token Distribution
Late last year, we announced the first staking opportunity since IOTA’s inception in 2015. The 90-day staking period gave the IOTA community the opportunity to participate in the fair token distribution of the Shimmer and Assembly networks. As planned, further staking phases will also be possible in the future for the three networks: IOTA, Shimmer, and Assembly. This article explains the phases.
In the past 90 days, IOTA token holders have had the opportunity to receive two new tokens through IOTA staking: Shimmer (SMR) and Assembly (ASMB). For every 1 MIOTA staked, token holders received 0.03 ASMB and 8,640 SMR each day. During the 90 days, we allowed all interested IOTA token holders – and those who wanted to become one – to participate in the beginning of a new level of utility for IOTA. With the Shimmer staging network and the push forward into the fascinating world of smart contracts through the launch of the Assembly network, we are introducing new levels of utility to the IOTA ecosystem and are driving innovation at the protocol and token level.
For us, the most important stakeholder is and always will be the community surrounding our networks. Empowering the community to participate in the fair launch of the Shimmer and Assembly tokens was the main objective behind the introduction of IOTA staking. We strongly believe that distributing the Shimmer and Assembly tokens over the 90-day staking period was the fairest way to allow IOTA token holders to participate in the new tokens and their ecosystems. But even in our most optimistic assumptions, we never expected over 75% of the IOTA supply to be staked, a testament to the intense interest in the upcoming new networks.
According to Defi Llama, IOTA staking brought us to #11 of total value locked (TVL) in any crypto network, and even closer to the absolute top when looking at value locked purely in Layer 1 networks like IOTA. However, the initial 90 days of staking only marked its beginnings. We are eager to learn how the future will pan out.
Beginning shortly, three distinct staking opportunities will start one after the other. Continue reading to learn when you will be able to stake which token and what rewards you will receive.
After the initial 90-day staking period, staking IOTA tokens to receive Assembly tokens continues in two phases: one before and one after the launch of the Assembly network.
Staking IOTA tokens before the Assembly network launch
Shortly after the initial 90-day staking period, it will be possible to continue staking IOTA tokens for the upcoming Assembly network. In total, 20% of all Assembly tokens will be distributed to IOTA token stakers. As mentioned in the initial staking blog post in December 2021, the continued staking will last until a total of 24 months of staking has passed and will be done in intervals (note: three months have already passed with the initial 90-day staking period). In conclusion, IOTA staking for ASMB will be possible for 21 more months.
Before the start of continued IOTA staking for Assembly tokens, we will release a Hornet upgrade and an updated Firefly desktop version. Following these two releases, a new staking event will be set up and announced. All of the aforementioned will happen shortly after the end of the initial 90-day staking period
Staking IOTA tokens after the Assembly network launch
IOTA staking will be interrupted for the launch of the Assembly network but will later resume. IOTA staking for Assembly tokens will continue until a total of 24 months of staking IOTA tokens for Assembly tokens has passed.
The opportunity for staking IOTA tokens to receive Shimmer tokens ends with the initial 90-day staking period.
The Shimmer network will launch with the Stardust upgrade, which marks the finalization and implementation of the IOTA Smart Contract Support and Tokenization Framework. Before its launch, the network will be tested in an internal alpha version as well as a public beta version.
After the full launch of the Shimmer mainnet, the network will receive a few planned feature updates which will enable the opportunity to stake Shimmer tokens natively. The Shimmer token incentivizes users of the staging network and through staking ensures liquidity and allocating value to it. The supply is inflationary at 8% per year and will potentially be governed by a DAO at a later stage.
Staking Assembly tokens will be possible after the staking feature has been enabled, which will happen after the Assembly network has been launched.
The launch of the network is expected to roll out in two phases: the launch of the Assembly root chain is expected later in 2022, followed by a series of upgrades into a complete multi-chain network at a later stage. The yearly inflation rate of the Assembly token will initially be set at 8%.
The careful reader might have noticed that once Assembly has launched, there are two ways of supporting and securing the network: Staking IOTA for ASMB and staking ASMB for ASMB.
Firefly: One wallet to stake them all
The feedback we received from the community made it clear that Firefly’s staking experience was an intuitive and simple process. We will make sure that all upcoming staking opportunities across all networks will have the same easy-to-use experience. All three tokens – IOTA, SMR, and ASMB – will be managed with the Firefly wallet. With Firefly, the staking and unstaking of any tokens will only require a few clicks to enjoy one of the smoothest staking experiences in crypto.
There is an exciting and obviously challenging journey ahead of us in building the IOTA, Shimmer, and Assembly ecosystems, and we want to reward those who walk it with us. Be it the wild staging network Shimmer, the battle-proven IOTA network, or the enabler of a new level of utility, Assembly, we have made sure that each network has incentives to attract users, builders, and DLT enthusiasts, maximizing its utility and security while also supporting those investing time, money, and effort into it.
Through staking, all IOTA, Shimmer, and Assembly token holders will get the chance to actively participate in the networks. We can’t wait to welcome you on this road and look forward to the next chapter of staking on IOTA, Shimmer, and Assembly.