Upcoming Staking implementation on Vulkan

Staking is planned to go live on April 24th as decided by the core developers. A number of important decisions were made recently and this article is dedicated to providing information on the upcoming changes.

What is Staking?

Staking is the process of locking coins for a predetermined period of time chosen by the user. The benefits of staking include: allowing users to earn yield on staked coins, reducing the number of coins in circulation therefore driving scarcity and positive market pressure becomes more impactful.

Vulkan's implementation of staking creates a Staking Pool that systematically distributes yield based on the lock period. It is arguably a less decentralized implementation but the team had zero incidents historically and are confident in this update.

Where can users begin Staking?

Staking will first be available in the Vector Web Wallet in the Staking tab. The process is relatively simple, only requiring a few clicks.

Important changes coming with the Staking Update

The most notable change coming with the Staking Update is allocation of 5,000,000 VUK coins to the Staking Pool. The reasons behind this decision are simple and expected to have positive outcomes. Most importantly reducing team allocation by 40.17% and replacing it with a 6.5% mining block fee, a 5% lower than the initial 11.5% figure. The mining block fee will be introduced in a future hardfork after staking is already live, this early feature is made possible by funding the staking pool with the coins truncated from the team allocation.

What yield to the users get by staking?

There are 4 predetermined lock periods:

|— 30 days

|—— 0.6%

|— 60 days

|—— 1.2%

|— 120 days

|—— 2.6%

|— 360 days

|—— 8.0%

Early withdrawals can be made after a minimum of half the lock period, however, this results in the loss of the yield earned.

TL;DR Conclusion

Vulkan implementing staking brings many benefits in terms of tokenomics, reducing team allocation and will aid with collateral stability in the future when the USDV stablecoin launches.

Published 04/14/2025