The token of Cosmos (ATOM) blockchain-based liquid staking protocol Stride (STRD) is surging after the platform updated its incentives program.
On April 7th, Stride rolled out a 60-day liquidity incentives program that dramatically reduced the number of STRD tokens that are being distributed as incentive for ensuring stToken liquidity on decentralized exchanges.
“First of all, currently about 27,000 STRD is emitted per day as incentives. But once this new incentive program takes effect on April 7th, that rate will fall to 7,100 STRD per day – a decrease of more than 70%.”
The protocol says that much of the STRD that is being used as incentives will be replaced with other tokens.
“Although the tokens used for incentivization are changing, holders of stTokens and stToken liquidity providers can have confidence that the Stride DAO will continue incentivizing stToken liquidity indefinitely, and adequate guidance about future changes will always be given well in advance.”
The protocol says giving huge incentives has made the blockchain more decentralized but it will not be feasible in the long term. It says the new program will likely be renewed for another 60 days.
“Huge incentive programs aren’t sustainable. Now that Stride has achieved over 80% liquid staking market share in the Cosmos as well as numerous integrations, the focus can shift to sustainability.
Going forward, the focus will be on ensuring stToken trading liquidity in a sustainable way.”
The price of STRD is seeing impressive gains amid the changes. The token is currently trading for $1.95, up by 34.6% over the last 24 hours.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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