AdEx Network has just finalized the successful upgrade of their Validator Tom staking pool to align it better with the fast-changing world of DeFi. The upgrade will bring stakers a number of enhancements like reduced fees, partial unbonding and more.
What is AdEx Staking
AdEx Staking was launched in December 2019, with the first batch of rewards going out in January 2020. Initially, staking rewards only came from validator fees collected on the AdEx advertising platform.
In August 2020, the company announced a major upgrade of its native ADX token together with a revamp of the staking portal and the addition of extra staking rewards. This aligned the company with the latest DeFi trends.
Since the token upgrade, the annual percentage yield (APY) has remained above 50% for Validator Tom, the main staking pool available. To date, there are approximately 35 million ADX staked in that pool.
AdEx has also introduced a Loyalty pool to its staking offering. It pioneers elastic issuance powered by a collaboration between AdEx Network and Chainlink, and offers not only staking rewards but also governance and the right to vote in decisions related to the AdEx ecosystem.
The Validator Tom Contract Upgrade
This March, the Validator Tom staking pool was upgraded to a new smart contract. This upgrade comes as a natural next step for the company and adapts AEx Staking to the fast-moving DeFi world. It brings stakers a number of benefits to make their experience smoother and more profitable.
The first and perhaps most significant improvement will be automatic compounding. Up until the upgrade, people needed to re-stake manually, thus incurring gas costs. With the new contract, the initial staking gas fee will be up to 3 times lower, and staking will be free of charge.
Users will also be able to take advantage of partial unbonding, i.e. withdrawing only a portion of their staking bond rather than the entire one.
For users who are in a hurry, the new staking contract will offer the so-called “Rage quit” option: unstaking immediately and avoiding the 30-day unbonding period. This feature, of course, would be a subject of a penalty, which will then be distributed to the remaining stakers.
The lock-up period on the upgraded staking portal has been decreased in favor of stakers - instead of the previous 30 days, the unbonding period is now only 20 days.
Last but not least, the upgrade will bring users ADX buybacks. This means that the fees collected from the advertising platform validators will be used for buying ADX tokens and distributing them as rewards to stakers.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.