Glossary

Glossary

Core Concepts

Value Accrual: The process by which a token captures and distributes value generated by an associated protocol or network, creating sustainable tokenomics.

Staking: The act of locking up tokens in a smart contract to participate in network validation, governance, or earning rewards.

Tokenomics: The economic model of a token, including its supply, distribution, utility, and incentive mechanisms.

Rewards: Tokens or other assets distributed to participants for contributing to the network, such as through staking.

Yield: The rate of return earned on staked tokens, typically expressed as an annual percentage.

Staking System Components

Staker Contract

Earning power

A metric that determines a staker's proportional claim on rewards, which may be equal to or modified from their staked amount.

Earning power calculator

A component that determines how rewards are distributed to stakers based on various criteria.

Reward notifier

A contract that informs the staking system about new rewards and triggers their distribution.

Delegation Surrogate

A contract that holds staked tokens and delegates their voting power to a specified address.

Reward stream

The mechanism by which rewards are distributed gradually over time rather than all at once.

Reward duration

The time period over which rewards are distributed (default 30 days in the Tally system).

Governance Integration

Delegation: Assigning voting power to a specific address without transferring token ownership.

Delegatee: The address that receives voting power through delegation.

Governance Token: A token that grants voting rights in a protocol's governance system.

Governance Staking: Staking that preserves governance voting rights while earning rewards.

Auto-Delegation: A system that automatically delegates voting power according to configurable rules.

Liquid Staking

Liquid Staking Token (LST): A token representing a staked position that can be transferred or used in DeFi while the underlying tokens remain staked.

stGOV: Tally's liquid staking token implementation for governance tokens.

Rebasing LST: A liquid staking token whose balance automatically increases as rewards accrue.

Fixed LST: A liquid staking token with a fixed balance where the token-to-underlying exchange rate changes as rewards accrue.

Withdraw Gate: A contract that enforces a configurable delay when unstaking to prevent reward gaming.

Reward Mechanisms

Reward Source: The origin of rewards distributed to stakers (e.g., protocol fees, treasury, or token emissions).

Protocol Revenue: Fees generated by a protocol's operations that can be distributed to stakers.

Stake Streak: A mechanism that increases rewards based on how long a user has been staking continuously.

Bump: The process of updating a deposit's earning power, which may be incentivized with a small reward.

Reward Rate: The speed at which rewards are distributed per unit of time.

Advanced Concepts

Oracle-Based Earning Power: A system where external data feeds influence staking rewards, such as delegatee activity scores.

Overwhelming Support Auto-Delegate: A delegation strategy that only votes on proposals with significant consensus.

Dual Staking: The ability to use staked tokens for multiple purposes simultaneously, such as with EigenLayer.

Restaking: Using already-staked tokens to secure additional protocols or services.

Technical Terms

ERC20: The standard interface for fungible tokens on Ethereum.

ERC20Votes: An extension to ERC20 that supports vote delegation.

EIP-2612: A standard allowing gasless approvals using signed messages.

Permit: A function that processes signed approvals without requiring separate transactions.

OnBehalf: Methods that allow actions to be performed on behalf of users via signatures.

Ready to launch incentives and staking? Talk to our team to get started.