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Set up Tally's staking system: prerequisites, reward sources, and considerations for successful deployment.

Prerequisites

The simplest version of staking requires just two things, a staking token and a reward source.

• Holders stake the staking token for rewards.

• The admin of staking distributes rewards to stakers.

The staking token and the reward source must be ERC20 tokens. The reward token can be the same as the staking token.

Additional Options

Staking is compatible with governance

If the staking token is also a governance token - i.e. it implements ERC20Votes -then it works with the staking system. Staking passes through voting power to the underlying governance token. No changes needed on the governance system.

Incentives

Optionally, staking rewards can depend on an EarningPowerCalculator. Calculators can increase or decreases rewards based on any criteria. Even offchain criteria can be used, with an oracle.

Token Launch Considerations

Many protocols implement staking along with their token launch. Combining the two launches offers several benefits:

• Immediate utility for new tokens

• Higher staking conversion rates

• Reduced initial selling pressure

• Clear value proposition for tokenholders

Combining Token Launch with Staking

Tally helps protocols launch tokens with integrated staking capabilities. Our token launch flow allows tokenholders to stake immediately after receiving tokens.

This integrated approach:

1. Improves conversion rates

2. Increases the amount staked

3. Establishes sustainable tokenomics from day one

Learn more about how Tally helped Obol combine token launch with staking launch here.

Choosing the Right Implementation Approach

Your implementation approach depends on your protocol's stage and needs:

For New Protocols:

• Implement staking alongside your token launch

• Design tokenomics with value accrual in mind from day one

• Create a complete economic loop between usage, fees, and rewards

For Established Protocols:

• Add staking to create utility for existing tokens

• Connect protocol revenue streams to reward stakers

• Consider a phased approach to test and adjust parameters

Next Steps

Once you've considered these prerequisites and options:

1. Review the technical implementation details in the next section
2. Decide on your reward source and notifier approach

3. Define your staking parameters

4. Contact Tally for support with your implementation