NOVA: Fee issue — Solutions & rewards
In our previous article, we explained our issue in brief (https://kometcapital.medium.com/concerning-the-fee-issue-on-nova-714efe1139e0)
Here we will detail some of the solutions and associated incentives available to you for each of these options.
Solution 1: Continue staking until the end of the Nova Distribution Period
As we previously said, the overall NOVA reward calculation will remain functional, so you can simply continue to stake until the end of the last halving on May 16th. At that point, staking will end, and we will publish a migration contract to claim your NOVA v3.
To compensate our long time stakers for their struggle, we will be issuing the following benefits:
- Users will receive 100% of their NOVA reward without any withdrawal fees
- Users will receive a bonus of NOVA and Komet (both non-dilutive)
- Users will receive a bonus that will entitle them to an increasing share of returns from the Komet fund (We would like to issue this bonus as an NFT, but this will depend on complexity and developer resource constraints. We will keep our users posted on this).
Solution 2: Emergency Withdraw
If you are past the 60 days mark, you have the option to emergency withdraw your NOVA. We will take a snapshot on the 26th of February with each address and its associated NOVA reward. So you can simply emergency withdraw from the UI on our site and you will have your NOVA v3 reward when staking ends on ~May 16th.
- You will receive 100% of your reward without any fees
- Users will receive a bonus for their troubles, but it will be smaller compared to the bonus in 1)
If you make an emergency withdrawal after 26 February, please contact us so that we can update your reward in our snapshot.
Solution 3: Push the can down the road
For those of you who have staked for less than 60 days, you can avoid the bug entirely by withdrawing a very tiny number of your LP tokens (e.g., .0000001). This operation will reinitiate future withdrawal fees at 30% and give you another 60 days more to make your choice. In order to compensate users for their hardship in this scenario, we will
- reimburse the gas costs of withdrawing very small LP
- reimburse the initial and future withdrawal fees if a user stakes again and remains for more than 60 days since their initial staking
We again apologize for this unfortunate distraction. We certainly did not want to expend a lot of energy repairing yet another Nova bug, but it is obviously important that we put out a solution. That said, this migration was inevitable for several technical reasons, and we would like to highlight some of the benefits that this migration offers us from a development perspective:
- Compatibility and integration with our DAO
- Contract Upgradability
- Elimination of technical pain points
Make no mistake, these small contract bugs are certainly not going to stop us from achieving what we set out to accomplish. We remain fully convinced that the future of finance is decentralized and that Komet plays a unique role in that future with our unparalleled tokenomic incentive structure. This may be hard to conceptualize at the moment since our product is not yet released, but the product will soon speak for itself. We have lots more exciting, innovative, and novel incentives coming soon. This — in conjunction with our extremely sharp developer talent, and deep expertise in user experience — positions Komet to be a categorical pioneer in decentralized asset management. This trek is not a quick or easy one, but it is most definitely a rewarding one.