Features & Use Cases

Tally's value accrual product offers several key features that help protocols create sustainable tokenomics. Each feature addresses specific protocol needs and can be customized to fit your goals.

Returning Fees

Tally's staking system allows protocols to return protocol fees to token stakers. This creates direct economic alignment between protocol usage and token holder rewards.

How it works:

• Protocol governance decides what percentage of fees to distribute to stakers

• Fee distribution can be automated through smart contracts

• Rewards can be paid in native tokens, ETH, stablecoins, or other assets

Customer example: Uniswap DAO plans to implement fee sharing with stakers, allowing token holders to benefit directly from protocol growth and usage.

Governance Integration

Unlike other staking systems that force users to choose between earning yield and participating in governance, Tally's solution supports both.

How it works:

• Staked tokens can delegate their voting power

• Optionally, rewards depend on the tokens being active in governance

Customer example: Obol implemented staking with governance integration, ensuring their stakers can earn rewards while still contributing to protocol governance decisions. Read the OBOL case study here.

Other protocols like Rarible and Arbitrum are exploring making staking rewards conditional on delegating to an active delegate, further incentivizing governance participation.

Network/Protocol Validation

Tally's staking system is compatible with staking and restaking protocols that provide validated services.

How it works:

• Native tokens can be used to secure actively validated services

• Compatible with protocols like EigenLayer and Symbiotic

• Aligns token holder incentives with network security

Insurance Fund

Staked tokens can serve as insurance against reorgs or losses

How it works:

• Native tokens are staked in a pool and accrue rewards

• If something goes wrong, like a reorg or shortfall crash, staked tokens are slashed to cover the losses

Stake Streaks

Stake streaks reward long-term holders, creating incentives for extended token holding periods and reducing market volatility.

How it works:

• Stakers' earning power increases over time

• Rewards scale based on continuous staking duration

• Encourages long-term protocol alignment, and reduces token velocity