Dynamic Staking Model

Authors: @Finance.Nest @Pepperoni_Joe

The dynamic staking model (DSM) commenced on 1st February, however, to give contributors the opportunity to consolidate holdings into one wallet address we will begin tracking holdings from February 10, 2022. The DSM will be available to the contributors in the Priority Hiring Round 1 and named contributors within each Nest proposal.

This post is directed towards contributors who are in the Priority Hiring Round 1. Information regarding the DSM for all other contributors will be available in the Leadership Forum on February 2.


  • Rewards for the DSM will be calculated by F.Nest.
  • Each participant in the DSM must consolidate all of their INDEX token holdings to a single Ethereum address.
  • Please provide this address here no later than February 10th.
  • The calculation will be based on the average daily token balance throughout the month. (February will be calculated from 10th Feb - 28th Feb)

Measuring Success

F.Nest will be responsible for tracking success metrics for the DSM. One of the primary objectives is for DSM participants to purchase and hold INDEX. The performance metrics will be reported monthly in the forum as well as the payouts from the DSM for individual contributors.

In summary, the DSM goes live on February 10th and will accrue in line with the DSM forum posts. This group intends to create a monthly forum post outlining the DSM emissions to ensure transparency across the organization.

We have an update due to be provided at the Leadership Forum on the 2nd of February.


I’m a big supporter of the DSM. Will DSM be available to all contributors down the road? I personally have no problem locking my tokens up long term


Same, I have only been around since Nov and don’t think this really pertains to me, although I have been spending a fair bit of time in IC.


The DSM will be expanding. I think we should be having updates out soon on that. We are waiting on the Nest Proposals to be completed


Where is the best place to read up on the DSM?

Is there a source of truth?


Another question because I’m being slow.

Are INDEX held within LP positions counted as being eligible for the DSM?

I currently have the majority of my tokens in LP positions, (which I consider is providing a service to the coop). If the DSM does not include them. that I should be withdrawing INDEX liquidity from the market.

Note that, as I understand it, the Snapshot votes include the INDEX within LP positions (Uni and Sushi???)


Hey @overanalyser,

This is the best post to read up on the specifics of the DSM whilst I draft something more reader-friendly.

I’ve have reached out to your directly to discuss the best way to handle INDEX LP positions in the DSM. I will circle back and share the outcome via the forum once we have confirmed an approach.



Hi @Pepperoni_Joe

the last post on the source of truth is dated December 2021.

I’m being told to move assets into a single wallet based on 2 month old information that isn;t clear, and I suspect has been updated.

I’m also being told that LP positions are still being considered for entry. SO I have a choice:

  • Exit LP positions (and crystalise a tax bill)
  • Stay as a LP and forego DSM rewards.

I can unstake from Sushi and move to my new address,(Which contains my INDEX deposits into Bancor [Which can no be moved]), but that spends gas with no clear benefit in terms of the DSM.

All while having no firm indication of what income the DSM will give me and how it compares to being an LP.

I get the distinct impression that none priority hires have been forgotten when it comes to the DSM. Is this the intention?

At the moment, I think that my best course of action it to remove all my LP positions and place them into the DSM. If I do so, I think that I’m very unlikely to ever LP INDEX tokens again.

As a member of the Liquidity pod, I’m confused as to why the DSM is designed to reduce INDEX liquidity.


Hey @overanalyser

Several contributors are working together to prepare a FAQ document that should help serve as the single source of truth on all things DSM.

Linked to this, we will also be publishing an outline of the new approach taken to Owl Levels which I’m hoping will lay the foundation for a broader rollout of the DSM.

Given DSM rollout for non-priorty hires is still in the works, there is no reason for you to take any action until we have published the aforementioned documents and provided more clarity on the DSM mechanisms and payout.

I wish this had been stated so explicitly in the initial post.