What is THOR Staking 2.0?

THOR Staking 2.0 is an updated staking mechanism for THORChain's THOR token. It was released in May of 2022, and gives users many added benefits not available in the previous iteration of THOR staking. When users stake THOR, they now receive vTHOR tokens in return, which represent their staked position. vTHOR is a fully composable and transferrable ERC4626 token. Rewards are automatically compounded, meaning users will no longer need to repeatedly re-deposit their rewards, saving time and gas. Another added benefit of THOR Staking 2.0 is that staking rewards no longer consist of solely Community Incentives emissions, but now also include 75% of all THORSwap revenues. In addition, stakers are entitled to Exchange Fee discounts.

This chart looks at the cumulative volume of THOR staked since the release of THOR Staking 2.0 on May 4th. The volume of THOR staked was greatest around the time of release and has decreased significantly since. The cumulative volume of THOR staked has plateaued towards the end of May.

Interestingly, the daily net cumulative amount of THOR staked, meaning the cumulative amount staked - the cumulative amount unstaked, is almost identical to the cumulative amount staked. This means that very little THOR tokens have been unstaked since the release of THOR Staking 2.0.