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Governance Rewards (GR)

Token holders who wish to participate in governance stake PL2 on the Dapp and are incentivized with Governance Rewards (GR). Users are eligible to receive a percentage of the Reward HODL in proportion to the amount of PL2 staked with an additional multiplier based on the staking duration. Depending on the staking duration, a multiplier is applied to calculate the staking weight that corresponds to the voting power (e.g. 10 PL2 staked for ten weeks result in more votes than 10 PL2 staked for two weeks).

Rewards for participating in governance can be calculated as an Annual Percentage Income Reward (APIR) as in the formula below:

APIR-GOV = R x D / L x 100

  • APIR-GOV  is the annualized income return received by participants.
  • R  is the user reward received per day (e.g. reward period is ≈6,500 blocks).
  • D  is the number of days in the current year.
  • L  is the amount of tokens that a user stakes for DAO Governance.

The DAO Governance of Plenny works similar to the governance contracts of Compound.