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: The main smart contract that manages token deposits, withdrawals, and rewards distribution.

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.