Dear Sherpas,
With the anticipated change of the OM token becoming the new L1 coin that secures the MANTRA Chain, we will also see significant changes to OM staking. MANTRA’s Sherpa community will consolidate around a single OM token, rather than two. Therefore, we need to prepare the current token for integration into MANTRA Chain mainnet at launch.
This consolidation process involves stabilizing OM allocations on the currently supported chains (Polygon, BSC & Ethereum) and bringing them together under the same umbrella. This includes the staked OM on app.mantradao.com and MANTRA Finance.
In this period of transition from dapp token to a mainnet coin, our staking accrual mechanism will also be updated.
For our loyal Sherpas, we will instill a new reward mechanism until the MANTRA Chain Mainnet is launched. The current auto-compounding feature of staked OM will be replaced by a system of regular snapshots leading up to mainnet launch. As mentioned in the proposal, we want to express our gratitude to the MANTRA community for their continued support. Your trust helped us get to where we are today. That is why an entire allocation within the new tokenomics is reserved for stakers of OM.
We will leverage the snapshots taken during the above-described consolidation process as a basis for calculating a multiplier on your staked OM upon the launch of MANTRA Chain mainnet. You are now able to earn up to a 1.35x multiplier on your staked OM — based on staking time and amount of staked OM. Essentially, the earlier you stake your ERC20 OM tokens, the higher your multiplier for new OM mainnet coins will be.
The following will provide further information on the new staking process. We will update this article as more information becomes available:
How can I earn the 1.35x maximum?
The maximum allocation can be earned by being staked in the eligible MANTRA staking pools. Our team will take regular snapshots to keep accurate track of each Sherpa’s stake across these pools and your final allocation will depend on your amount of staked OM and time staked.
What is the timeline for the new OM staking?
One week after the proposal passes, the 1.35 multiplier will start to accrue until approximately two weeks prior to the launch of MANTRA Chain mainnet. We will then calculate the earned rewards and set up the distribution.
Where will the reward OM be distributed?
While you can keep your staked OM tokens on your preferred and supported EVM chain, the earned OM rewards will be distributed on MANTRA Chain.
What do I have to do in order to be eligible?
There are 2 things you need to do in order to earn your rewards. (1) stake into the eligible OM single asset staking pools (2) create a linked cosmos wallet address to your EVM staking wallet address or share your cosmos wallet address with the MANTRA Team. More information on (2) and how to report your wallet will be provided in due course.
Do I have to bridge my ERC20 OM to MANTRA Chain to be eligible?
No, you are not required to bridge your ERC20 OM tokens over to MANTRA Chain upon mainnet launch. The up to 35% OM reward tokens however, will be distributed on MANTRA Chain.
What happens once Mainnet is launched?
Once mainnet is launched, this also signifies the successful upgrade of OM to becoming the native L1 coin that secures the Proof of Stake MANTRA Chain. With this significant milestone achieved, OM will go back to a similar staking model as before — on MANTRA Chain.
Why are you discontinuing the current staking?
As you know, we do anything we can to be fair to all sherpas and this is the only way we can make sure that all staked OM (sOM) are represented equally during the snapshots. Due to different TVLs and reward distributions of each bucket, the weight of each sOM would be changing constantly if we kept auto-accruing OM rewards, making this fair treatment impossible. We do not want users to feel mistreated by receiving a disproportionate advantage (or disadvantage) depending on the OM pool they staked in.
Where does the staking reward OM come from ?
Upon mainnet launch, new OM tokens will be issued to facilitate the new operational demands. Within these issued tokens, there is an “OM Upgrade” allocation entirely reserved for this process. You can read more on the new tokenomics within the PROPOSAL and a complementing ARTICLE. Please note that we may be required to adjust some parts of our tokenomics as required by centralized exchange partners.
What happens with minted reward tokens that were not claimed by the community?
All tokens within the “OM Upgrade” bucket, that were not earned as rewards during the transition to mainnet will be transferred to the “Community Pool”. This upgrade allocation is entirely focused on the Sherpa community.
How does this affect the current migration of OM staking on app.mantradao.com to MANTRA Finance ?
The migration will continue and we will eventually have transitioned all OM staking pools to MANTRA Finance. At this point, app.mantradao.com staking UI will be disabled and also excluded from earning the 1.35x multiplier. We will make more announcements to warn everybody in due course before this happens.
Closing Remarks:
Thank you for your continued support. Should you have any more questions about the above, please feel free to contact our team through the official communication channels.
