This is the seventh article in a series about KIRA Improvement Proposals 71-87. In the first set, we discussed the economic incentives for staked consensus nodes on KIRA. In the second set, we covered KIRA’s on-chain governance. This is the second article of the third set, focusing on staking collectives.
Overview
Staking collectives are a new feature in KIRA. They allow multiple users or those with specific governance roles to pool their staked assets and redistribute the rewards to others. Simply put, one group can own or control the staking tokens, while another group earns the rewards from those tokens.
These collectives enable active community members to create their own incentive structures for various off-chain community goals. Staking collectives will distribute their staking rewards through spending pools.
Collective Structure
Anyone can permissionlessly create a staking collective on KIRA. To activate it, a minimum bond of 100,000 KEX (or equivalent value of another token) must be reached. This minimum can be adjusted by governance. At least 10% of the minimum bond must be provided to create the collective. Users can be whitelisted to deposit to the collective, or deposits can be permissionless.
If the minimum bond isn’t reached within 24 hours, the collective is removed and funds are returned.
Once activated, contributors can lock their staked tokens for a set period, up to a maximum of one year. Once set, this lock period cannot be shortened, only extended.
Whitelisted contributors can also set a donation amount, a percentage of staking rewards that will be controlled by the collective. This donation amount is locked along with the staked tokens and cannot be changed if the lock period is extended.
Staking rewards can be divided among up to 10 spending pools, with each pool having individual weights.
Collective Governance
Each staking collective must have one or more owners, who are responsible for managing the distribution to the spending pools. These owners can create and vote on collective proposals, such as:
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Curating the list of owners
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Curating the deposit whitelist
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Changing the status to paused (allowing only withdrawals)
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Transferring donations to selected addresses
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Changing claim conditions (start, period, end)
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Modifying the description
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Removing the collective
Only members of the collective can vote on these proposals.
Benefits to KIRA Participants
Staking collectives support off-chain coordination, crucial for KIRA Network’s growth. They allow staked assets to contribute beyond securing consensus, providing the economic support needed for the KIRA ecosystem to thrive. By introducing staking collectives, KIRA empowers its community to drive network improvement.
Stay tuned for the next article on INTERX, KIRA’s middleware and Content Availability layer.
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