Written by Logan Smith

On July 28, 2021

Sunsetting Long Staking

What you need to know first:

We will be turning off the Proton long staking contract at 3:00pm PST today, July 28th, 2021. Upon shutoff, no further 90-day and 365-day long stakes will be possible, and all existing long stakes will continue to function as normal. This shut off will not affect existing long staking contracts. When your existing long staking contract ends, you will receive your initial deposit of XPR back, plus any applicable premiums based on the smart contract you created at the time of deposit.

Here’s our thinking: 

When we designed long staking on Proton, it was done as an experiment. Was it possible to create a cryptocurrency staking mechanism that would benefit the staker if another project outperformed the staked asset? We wanted to answer that question, and we did.

Long staking is a beautiful concept. As we explained in our deep-dive, long staking on Proton is a way to have your cake and eat it too. Long staking allowed users to lock their XPR into a contract that was tied to the performance of Bitcoin. If BTC outperformed XPR, you would receive a premium on your staked amount; if XPR outperformed BTC, you wouldn’t receive a premium, but you would know that you made the right choice by grabbing XPR instead of BTC.

It worked. Our long staking smart contracts functioned as expected, and users enjoyed a new wave of cryptocurrency staking. However, after looking at the data, we don’t believe that long staking is what we want for the Proton blockchain moving forward. The current market conditions meant that long staking represented a risk of hyperinflation for the Proton blockchain, and we know that our community wants to minimize as many opportunities for inflation as possible.

Which means it’s time to shut down long staking for Proton. If you’re currently long staked, don’t worry: your contracts will still function as expected. But we will not be accepting any more long staking contracts as of 3:00pm PST on July 28th, 2021.

Long staking works, but it wasn’t what we wanted for the Proton blockchain. This has been a fantastic experiment to see if staking based on decentralized oracles is possible, and we hope to see some other blockchain use what we’ve learned. We’re going to continue to look at the data we gathered to create new exciting staking features in the future, and we’ll be sure to update our community when the time is right.

Short staking is still a feature of the Proton blockchain! This is a more traditional form of staking, where users can park their XPR in a short staking contract, vote for block producers, and receive a variable APR every 24 hours. The easiest way to short stake your XPR is to open your Proton Wallet app, tap on Proton, and navigate to the short staking page – you can do all of this in just a few clicks.

Our community is our most important audience, and we will always do what we can to listen to their feedback, protect their assets, and show our appreciation. Thank you for being part of our ecosystem, we can’t wait to show you what’s coming next.

Other Proton articles:

Introducing Proton DEXember

Introducing Proton DEXember

It wouldn’t be right for us to finish the year without a traditional Proton Blockchain wordplay, and that’s why we’re seeing out 2022 with the launch of DEXember. #DEXember — Marshall Hayner (@MarshallHayner) November 24, 2022 The DEXember campaign is a month...

Black Friday – Reduced USDC Deposit Fees

Black Friday – Reduced USDC Deposit Fees

At Metallicus, we believe everyone should offer Black Friday deals, not just your favorite online shopping retailer. That is why we are delighted to announce that we have slashed the fees for the Proton Blockchain Fiat On-Ramp from today until December 31st, 2022....

The New Proton DEX | Decentralized & Compliant

The New Proton DEX | Decentralized & Compliant

Metallicus is delighted to announce the launch of the Proton Blockchain Decentralized Exchange (Proton DEX), a peer-to-peer marketplace that connects cryptocurrency buyers and sellers with each other while simultaneously ensuring that users remain in control of their...

Meet the Block Producers | EOSphere

Meet the Block Producers | EOSphere

Over the course of the next few months, we will be introducing you to the incredible Block Producers that power the Proton Blockchain. Discover their reasons for becoming Block Producers, how they discovered the world of Cryptocurrency and Blockchain, and the reasons...

Free Lifetime Trading with Proton DEX Keys.

Free Lifetime Trading with Proton DEX Keys.

The highly anticipated Proton Decentralized Exchange (Proton DEX) is almost here, supercharging the Proton Blockchain experience even further, bringing seamless and instant cryptocurrency exchange trading. Proton DEX will allow customers to trade their cryptocurrency...

Meet the Block Producers | Saltant

Meet the Block Producers | Saltant

Over the course of the next few months, we will be introducing you to the incredible Block Producers that power the Proton Blockchain. Discover their reasons for becoming Block Producers, how they discovered the world of Cryptocurrency and Blockchain, and the reasons...