Staking is made available right after reveal, allowing holders to gain access to instant utility through staking their Sky Islands. Staking will take place on L1 Ethereum Network whereby holders will pay a one-time fee to earn $SKY tokens. We are implementing the one-time fee staking method instead of pay-to-claim method as this is more cost effective and saves our holders money. Amount of $SKY earned is pre-determined based on the rarity and number of Sky Island staked. There are 2 forms of Staking, Traditional Staking and Time Based Staking. The table below compares both Traditional Staking & Time-Based Staking.
Therefore, SkyVerse has chosen to use Time-Based Staking instead of Traditional Staking as it better rewards long-term holders, by offering them higher token bonuses/more rewards based on the duration they hold. This allows someone who have staked for 3 months to earn twice as much tokens as someone who just started staking.
$SKY will only be generated by the Community, for the Community. This is to ensure a fair token economy without any unnatural supply or demand, there will not be any $SKY allocation for SkyVerse's team. The only way to generate and own $SKY is to stake a Sky Island, to make it a level playing field for all. Therefore, $SKY will be highly scarce, with the only way of obtaining it is through owning and staking a Sky Island.
To ensure that $SKY remains highly valued, we will burn 100% of $SKY tokens that are used for the following Utilities. This will position $SKY to be highly scarce throughout the timeline of SkyVerse, and uphold its value in a deflationary manner.