sNQW
Token Mechanics: sNQW (NEIQW Staked BNB)
sNQW Definition: When you stake BNB on NEIQW Liquid Staking, you receive sNQW, representing your staked position accruing rewards over time.
Usage: sNQW can be used just like BNB in various DeFi applications or converted back to BNB plus accrued rewards via the Unstake function.
Price Dynamics: The value of sNQW is directly tied to the staked BNB and its rewards in the pool, calculated as:
sNQW Price Formula: Total BNB staked (including rewards) / Total sNQW minted * Current BNB price.
This liquid staking approach by NEIQW offers flexibility, liquidity, and efficiency, enhancing the utility of staked assets within the broader DeFi ecosystem while securing the BSC network.
Introduction to veNQW
veNQW represents a user's voting power for BNB delegations within NEIQW Liquid Staking. Users earn veNQW by staking NQW tokens. This system empowers users to vote for specific BSC validators, influencing the allocation of BNB delegations to those validators based on the collective veNQW votes they receive.
The Functionality of veNQW
Previously, BNB delegations were distributed randomly among validators meeting basic criteria, which allowed validators to maximize node utilization and rewards. veNQW introduces a more engaged and strategic approach, linking NEIQW’s delegation strategy directly with its users' preferences. By staking NQW, users accrue veNQW over time, which they can then use to vote for preferred BSC validators directly through the NEIQW platform.
veNQW Mechanism
Staking: Users begin with a veNQW balance of zero. For every NQW staked, veNQW accrues linearly, reaching up to 100 times the amount of NQW staked (e.g., 1 NQW = 100 veNQW).
Accrual Rate: The accrual rate of veNQW is 0.000003888888888888 per staked NQW per second.
Unstaking: Unstaking any NQW resets the user's veNQW balance to zero.
Voting: Through the "Vote" tab in NEIQW Liquid Staking, users allocate their veNQW to vote for their preferred BSC validators. Each user's total veNQW equals 100% of their voting power, which can be distributed across multiple validators.
Delegations: The amount of BNB delegated to validators is proportional to the total veNQW votes they receive from all users.
Benefits of veNQW
Direct Influence: By using veNQW, users have a direct impact on which validators receive additional BNB delegations.
Enhanced Engagement: veNQW encourages active participation in the NEIQW ecosystem, aligning user interests with network security and validator performance.
Strategic Delegation: veNQW allows for a strategic delegation process that supports validators who are positively contributing to the BSC ecosystem, fostering a more robust and secure network.
Delegation Strategy
NEIQW's delegation strategy, guided by veNQW voting outcomes, ensures that BNB delegations are aligned with user preferences, enhancing the overall effectiveness and decentralization of the network's staking landscape.
NEIQW Liquid Staking: Delegation Strategy Overview
General Access for Validators
NEIQW Liquid Staking ensures open participation for all BSC validators who meet the basic operational standards, creating a permissionless and inclusive environment. There is no whitelisting process, allowing any qualified validator to participate.
Delegation Strategy Focus
NEIQW Liquid Staking is designed to distribute staked BNB among high-performing validators, adhering to a principle of decentralization. Both pools—Open and veNQW—are accessible to validators, with or without veNQW holdings, provided they meet the necessary performance and security criteria.
Delegation Pools Explanation
Open Pool: This pool is open to all validators meeting the minimum requirements and receives 65% of the total delegations. The allocation within this pool is random but strictly among those who qualify under the set performance benchmarks.
veNQW Pool: Exclusive to veNQW holders, this pool allocates 35% of the total delegations. Validators eligible for this pool must meet specific criteria set for veNQW holders and are chosen based on the aggregate veNQW votes they receive.
Validator Minimum Criteria
Uptime: Minimum of 15 days remaining uptime.
Stake Requirements:
Open Pool: Minimum of 6,000+ BNB.
veNQW Pool: Minimum of 2,000+ BNB.
Delegation Fees:
Open Pool: Fixed at 2%.
veNQW Pool: Ranges from 2% to 5%.
Delegation Allocation Structure
Open Pool Allocation: Randomly distributed among all qualifying validators, including those with or without veNQW, as long as they charge a 2% delegation fee.
veNQW Pool Allocation: Distributed based on the veNQW voting outcomes. Only validators with a delegation fee between 2% and 5% and sufficient veNQW vote counts qualify.
Validator Outcomes Based on Fee and veNQW Influence
2% Fee without veNQW: Qualifies for the Open Pool only, with random allocation.
2% Fee with veNQW: Eligible for both Open and veNQW Pools. veNQW Pool shares are allocated based on veNQW votes, while Open Pool shares remain random.
Delegation Fee between 2% to 5% with veNQW: These validators exclusively receive allocations from the veNQW Pool based on veNQW votes.
Above 5% Fee: Validators with fees exceeding 5% do not receive any delegations from NEIQW Liquid Staking.
This structured approach ensures a balanced and fair allocation of resources, promoting both the growth and security of the BSC network through strategic validator support.
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