Ethereum

Staking LQTY in V2: A BOLD New Way to Align Incentives

The new LQTY staking module breaks away from the precedent set by voting escrow (ve) systems. 

It offers a sustainable, community-driven model that puts long-term stakers first—with zero dilution risk and no need for locks.

1. Dual Rewards
Staking LQTY in V2 unlocks rewards from both V1 and V2, offering stakers BOLD adoption as well as continued participation in LUSD.

2. No long-term lockups
Unlike “ve” models that require lock-ups, V2 gives stakers the flexibility to unstake at any time.
It also avoids the dilution risks seen in ve-models.

3. Stake longer, gain more power
The longer you stake, the more voting power you accumulate, giving you real influence over protocol decisions.

4. Immutable, yet flexible
Liquity V2’s core is immutable—trustless and secure—but the voting model is adaptable.

LQTY staking in V2 offers a sustainable, community-driven approach that prioritizes long-term stakers without the risk of dilution.