The ENJ/BNT liquidity pool has faced a significant setback, retaining only 40% of the original ENJ deposits. However, by utilizing just 1.36% of Enjin’s upcoming staking incentive, we have a promising chance to recover our losses.
Due to unforeseen circumstances, our ENJ/BNT liquidity pool has suffered a significant deficit. The pool currently holds only about 40% of the original ENJ deposited. While this situation is regrettable, we have an opportunity to pivot and leverage our remaining ENJ tokens in a way that could potentially recover some, if not all, of our initial investments.
Enjin is launching a staking incentive program that allows ENJ holders to participate in the Enjin Blockchain governance and oversee validator nodes. By joining nomination pools and bonding our ENJ, we can earn governance rewards. For early participants in these nomination pools, up to 250,000,000 ENJ will be available as early governance rewards. This incentive is only available until 15 January 2024.
NOTE: Starting day of the incentive programm is the 13th December.
Participation in Governance:
Utilize the remaining ENJ tokens in our pool to participate in the Enjin Blockchain governance rewards.
Bonding in Nomination Pools
By bonding our remaining ENJ in nomination pools, we can oversee validator nodes and earn governance rewards. This is especially lucrative for early participants, as mentioned in the incentive program.
It’s important to acknowledge that bonding ENJ in nomination pools comes with risks, such as having ENJ slashed in case of validator nonperformance. However, given our current situation, the potential rewards far outweigh the risks. Moreover, by actively participating in governance, we can have a say in nominating competent validators, reducing the risk of nonperformance.
The early governance rewards offer a significant opportunity to recover some of our losses from the liquidity pool deficit. By acting quickly, we can maximize our share of the 250,000,000 ENJ rewards.
Today 06.09.2023 250 M. ENJ are roughly equal to 67 M. USD.
The deficit (surplusUSD) = -$791,152
Total incentive amount = 250,000,000 ENJ
To close the deficit, approximately 1.36% of the total incentive (in USD value) would be needed.
Recovery of Losses:
While the exact amount of governance rewards is uncertain, participating gives us a chance to recover some of our losses from the pool deficit.
While the deficit in our ENJ/BNT pool was an unfortunate setback, we now have a unique opportunity to pivot and potentially recover our losses. By participating in the Enjin Blockchain governance and staking, we can leverage our remaining ENJ tokens for future rewards and growth.
We urge all members of the DAO to consider this proposal and recognize the potential benefits it brings to our community.