VRC-6: Autostaking of $VANA

vrc-6

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+| VRC | Title | Status | Type | Author | Created |
+|-----|--------|--------|------|---------|----------|
+| VRC 6 | Autostaking of $VANA | Status | Type  | Author Ryan Kuhel and [email protected] | 2025-01-13 |
+
+## Abstract
+
+This VRC proposes enabling auto-staking of $VANA rewards within the Vana Hub to improve user experience for DLP creators and stakers. The current manual claiming and restaking process is time-consuming and creates multiple rows of staked $VANA, adding unnecessary complexity. Auto-staking would streamline the process by automatically reinvesting rewards while offering a bonus incentive to users, enhancing the protocol's attractiveness and usability.
+
+## Motivation
+
+Currently, $VANA rewards are issued to stakers and DLP creators, who must claim these rewards manually and restake them to compound their holdings. 
+
+This process has several drawbacks:
+# Cumbersome User Experience: Users must frequently interact with the platform, leading to frustration and inefficiency.
+# Fragmented Stakes: Manual restaking results in multiple rows of staked $VANA, complicating tracking and management.
+# Lost Growth Opportunities: The effort required may discourage some users from maximizing their returns through regular restaking.
+
+By introducing auto-staking, users can automatically reinvest their rewards with minimal effort, creating a seamless "set it and forget it" experience. A small bonus for using auto-staking will encourage adoption and reward user loyalty.
+
+
+## Specification
+
+Proposed Changes
+
+Technical Implementation
+
+Auto-Staking Option:
+Introduce a toggle within the Vana Hub interface allowing users to enable auto-staking for their $VANA rewards.
+Once enabled, rewards are automatically staked upon distribution, compounding the user's stake without requiring manual intervention.
+
+Bonus Incentive:
+Offer a small percentage bonus on auto-staked rewards (e.g., 1–2%) to encourage adoption.
+The bonus will be funded through the existing reward pool.
+
+Smart Contract Changes:
+
+Modify the staking smart contract to include an auto-staking function that:
+Automatically reinvests rewards upon issuance.
+Tracks compounded rewards and bonuses.
+
+Ensure compatibility with existing staking mechanics to prevent disruptions.
+
+User Interface Updates:
+Add an intuitive auto-staking toggle in the Vana Hub.
+Display auto-staked balances and cumulative bonuses to provide transparency.
+
+
+  ## Rationale
+    Improved User Experience:
+      Simplifies staking by eliminating repetitive manual actions.
+      Consolidates staking into a single row, reducing clutter and confusion.
+    Incentivized Growth:
+      The bonus rewards mechanism aligns with Vana’s goal of fostering long-term participation and engagement.
+      Increased Protocol Stickiness:
+    Auto-staking encourages users to maintain and grow their holdings, boosting $VANA demand and reducing sell pressure.
+      Efficient Resource Allocation:
+      Streamlined processes reduce the need for frequent user interaction, decreasing gas fees and platform overhea
+
+
+## Implementation
+
+Implementation Path
+Design Phase:
+Collaborate with Vana core developers to define smart contract and interface requirements.
+Estimate bonus percentage and its impact on the reward pool.
+Development Phase:
+Implement smart contract changes for auto-staking functionality.
+Develop and test UI/UX updates in the Vana Hub.
+Testing Phase:
+Conduct extensive testing to ensure compatibility and security.
+Perform user acceptance testing with a small group of DLP creators and stakers.
+Deployment Phase:
+Deploy the updated smart contract and UI/UX changes to mainnet.
+Launch a community campaign to educate users about auto-staking and its benefits.
+
+Impact Evaluation
+Metrics to Track:
+Adoption rate of auto-staking among users.
+Average staked $VANA balance growth.
+Increase in retention and engagement rates.
+Expected Outcomes:
+Higher staked $VANA totals.
+Improved user satisfaction and platform reputation.
+Long-term stabilization of $VANA tokenomics.
+
+Open Questions
+What bonus percentage will sufficiently incentivize users without overburdening the reward pool?
+Should there be a lock-in period for auto-staking to qualify for bonuses, and if so, how long?
+
+Conclusion
+Auto-staking of $VANA rewards with a bonus incentive will significantly enhance user experience, promote long-term engagement, and simplify staking mechanics for DLP creators and stakers. By implementing this feature, Vana reinforces its commitment to innovation and user-centric design.
+
+## Copyright
+
+Copyright and related rights waived via CC0.