KIP-46 Extension of Juror Incentive Program

A sufficient amount of staked tokens is necessary to guarantee the security of the Kleros protocol against attacks. By KIP-37, the community approved a staking rewards program with the goal of increasing the amount of PNK staked in the Kleros protocol.

The program was successful and there currently are more than 15M$ worth (145,036,281 PNK according to Klerosboard) of PNK staked.

As the program is near to an end, the goal of this proposal is to extend it for one more year.

Extra Staking Incentives

In the Kleros protocol, jurors are already rewarded for their work with arbitration fees when they get drawn in a dispute. However, staking in courts with a low amount of disputes per staked PNK (like the general court) doesn’t provide a high amount of financial rewards while those stakers are still securing the system.


I propose to extend the program for 12 months starting in January 2022. Each month, jurors will receive a total of 1,000,000 PNK each month in proportion to the time and amount staked in that month. The proposed allocation is 90% on mainnet and 10% on xDAI.


  • The tokens will be distributed using a Merkle Drop contract.

  • There may be a seasonality of the distribution (like once per week/month).

  • The computation of rewards may use snapshots as long as those are taken at least once per day (i.e. if tracking every stake/unstake events is not easy, it is possible to look at snapshots of staked balances and use those to determine how to split the rewards for that period of time).


The goal of this proposal is to incentivize PNK holders to continue staking their PNK and thus securing the protocol. At current values, the program has a reward of a 7% APY (labelled in PNK).


Has thought been given to increasing the reward even further? It could be an interesting experiment to see how much more PNK gets staked. And I also wonder if a staking ratio under 30% as we currently have is really satisfactory.

Of course, the drawback of higher rewards is that the cooperative’s treasury gets drained faster, but for my part I wouldn’t be against minting some fresh PNK as long as it’s redistributed to stakers.

Good shout Fede, it’s a sensible move to extend the program IMO.

An APY similar to staking ETH in ETH 2.0 is a sensible benchmark (which I believe equates roughly to what you proposed above).

Auto compounding once a month (upon payout) would also be cool (and would allow us to declare a slightly higher APY without changing the PNK budget…) Something to think about maybe?

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I support this in pair with a marketing campaign for v2. If v2 is going to solve the gas issue then there should be real adoption and the incentive program won’t be as necessary.

I just made a proposal/rant for increasing marketing here, sir: KIP-47? Ramp up marketing

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