KEY TAKEAWAYS
- Chromia will adjust the staking base APR for CHR tokens to 3% starting January 1, 2025, to ensure sustainable rewards.
- New incentives are introduced to encourage migration to the Chromia Network, including airdrops exclusive to Native CHR stakers.
- Chromia is facilitating the transition from Ethereum to its mainnet by integrating Native CHR with exchanges like MEXC.
Chromia has announced several updates that will impact current and future stakers of CHR tokens, effective from January 1, 2025. The changes include adjustments to the staking base Annual Percentage Rate (APR) and new incentives for migrating to the Chromia Network.
Changes to Staking Base APR
Starting January 1, 2025, the staking base APR for CHR tokens will be adjusted to 3% across all networks. This change reflects Chromia’s strategy to ensure the sustainability of staking rewards, given the fixed maximum supply of approximately 978 million CHR tokens. The adjustment aims to balance the distribution of rewards while supporting the long-term growth of decentralized applications (dapps) on the platform.
While the reduction in yield might appear disadvantageous, it is designed to offer benefits such as more sustainable rewards and reduced market entry of CHR tokens. Stakers will continue to earn a share of the fees collected by their delegated providers, which is expected to grow as the network expands. Additionally, Chromia plans to introduce more ways to reward stakers beyond CHR tokens as the ecosystem matures.
Incentivizing Migration to Chromia Network
Chromia is implementing measures to encourage the adoption of Native CHR on its mainnet. By March 1, 2025, system providers will need a combined self and delegated stake of 600,000 CHR, with a minimum self-stake of 60,000 CHR. Node providers will require a combined stake of 300,000 CHR, with a minimum self-stake of 30,000 CHR. These obligations must be met using Native CHR, marking a shift towards focusing on the mainnet ecosystem.
The first ‘Native CHR Staker’ airdrop is also in the works, with a snapshot planned for mid-January. This airdrop will be exclusive to Native CHR stakers, excluding those on Ethereum or Binance Chain. As the ecosystem evolves in 2025, additional airdrops and incentives will be offered, with some limited to Native CHR stakers.
Facilitating the Transition
To support the migration of CHR tokens from Ethereum Virtual Machine (EVM) to Chromia mainnet, several steps are being taken. MEXC has integrated Native CHR and Chromia’s FT4 token standard into their exchange, and efforts are underway for further centralized exchange integrations. Until the end of February 2025, stakers will continue to earn rewards during the 14-day withdrawal waiting period, ensuring they receive benefits while transitioning their tokens to Chromia.
For more detailed information on these updates, Chromia plans to release a follow-up article and FAQ. The full announcement can be read here.
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