Rewarding Templars With FAITH
The past 6 months have been a wild ride for Templars, and OC participants have witnessed the euphoria of a bull market and the dark cloud of a bear market with no end in sight. A perfect storm of adverse conditions and uncertainty has tested the faith of our beautiful Templars. Those who held fast to their belief in Temple, in the beginning, received FAITH as an airdrop. The Temple team has put much thought into how best to reward those still holding FAITH while keeping the interests of the rest of the community and new buyers in mind. The time has come to reveal how we will honor our commitment to our most loyal Templars.
A Brief History of FAITH
FAITH was an on-chain, consumable counter credited to wallets that held $OGTemple through the turbulent public launch and subsequent $TEMPLE price decline. Since it is a counter and not a token, up until this point Templars holding FAITH have not yet been able to realize its value.
FAITH was initially a component of Temple Devotion (aka BTFD Game). Devotion was an original piece of Temple V1 mechanics designed to incentivize buy pressure at low prices. However, due to the yielding token market collapse, overall market downturn, and the decision to accelerate the Temple roadmap towards reduced risk & automated staking options, Devotion was never launched and a better way to reward the faithful needed to be found.
And it has been found… Read on, Templar.
Objectives for FAITH Redemption
There were many important factors to consider with how FAITH would be redeemed in the context of Temple Core vaults. We needed to take the following into account:
- FAITH holders are duly & fairly rewarded.
- OC participants who initially received FAITH but who have since sold have the opportunity to come back into the Temple.
- Those who don’t hold FAITH are not overly diluted.
- We optimize the distribution of the pre-minted Bonus Pool to the community.
It was crucial to strike a fair balance between these factors, and we believe we have done so.
FAITH Redemption in Temple Core Vaults
For one month following the release of Temple Core vaults, FAITH holders will be able to redeem their FAITH when staking into vaults. The additional $TEMPLE rewarded upon redemption is paid from the existing Bonus Pool, requiring no new minting of $TEMPLE by the protocol.
FAITH redemption is a one-time event. In other words, a user’s entire amount of FAITH is burned upon staking into a vault, regardless of how much $TEMPLE they stake. What does this mean for you? The following are important things for you to take into consideration:
- The amount of rewards you receive when redeeming FAITH is dependent on how much $TEMPLE you deposit into the vault relative to the amount of FAITH you have.
- The more $TEMPLE you stake, the more $TEMPLE you’ll receive for your FAITH, with the max TEMPLE/FAITH reward ratio capped at 40%.
Another way to look at this is: if you optimize your $TEMPLE deposit, 2.5 FAITH is worth 1 $TEMPLE.
Let’s illustrate this reward curve with a few examples where a Templar holds 5000 FAITH:
- If 1250 $TEMPLE is staked into a vault (25% of total FAITH), 5000 FAITH is burned, and the Templar receives an additional 375 $TEMPLE.
13.33 FAITH is worth 1 $TEMPLE
- If 2500 $TEMPLE is staked into a vault (50% of total FAITH), 5000 FAITH is burned, and the Templar receives an additional 750 $TEMPLE).
6.66 FAITH is worth 1 $TEMPLE
- If 5000 $TEMPLE is staked into a vault (100% of total FAITH), 5000 FAITH is burned, and the Templar receives an additional 1500 $TEMPLE.
3.33 FAITH is worth 1 $TEMPLE
- If 6666 $TEMPLE is staked into a vault (133% of total FAITH), 5000 FAITH is burned, and the Templar receives an additional 2000 $TEMPLE.
2.5 FAITH is worth 1 $TEMPLE — the max reward claimable.
We encourage you to use this calculator to assess your FAITH bonus.
Note: Templars who received FAITH but are no longer holding $TEMPLE tokens in their wallet still have time to buy $TEMPLE, enter a vault, and receive a FAITH-based bonus with the above parameters.
For the right curvers in the Temple, the formula used to calculate your FAITH bonus is:
With the launch of Temple Core, FAITH holders will now be able to receive their much-deserved rewards. The redemption window will be open for one month following the release of Core Vaults. To receive the maximum reward, you must deposit into a Core Vault at least 33% more $TEMPLE than you hold in FAITH (!hint — use the calculator).
Once FAITH is redeemed, it cannot be used again in the future, and there will never be more FAITH entering circulation. We realize the wait for FAITH holders has been long, and we thank you for your patience. Enjoy your FAITHful rewards.
Update June 9, 2022
The community warmly received the article above about FAITH rewards, but our loyal Templars also had some recurring questions. Here we will address the most commonly asked questions about the FAITH claim and redemption.
What is FAITH Redemption?
FAITH redemption means Templars who enter the Core Vault with the FAITH boost will receive extra $TEMPLE tokens from the Bonus Reward pool applied to their deposit balance.
How does it work?
FAITH redemption is a one-time action. If you choose to redeem your FAITH, ALL of your FAITH is burned. Deposits will be locked at the time of entry for the duration of the vault cycle. The 1 month vaults run on a 30 day cycle.
At launch, users will be able to zap $TEMPLE + FAITH or $OGTEMPLE + FAITH into the vault (users will not have to unstake $OGTEMPLE first).
To calculate your bonus rewards, please use the FAITH Optimizer calculator. Remember that the Optimizer shows you the threshold or minimum amount to optimize your bonus, but you may deposit more.
How long do I have to redeem my FAITH?
FAITH redemption will be active for 30 days starting from the opening of the first vault. Because each new vault’s entry/exit window is 7 days long, you will have 4 weeks to enter a vault and redeem your FAITH. After 30 days, you will no longer be able to redeem your FAITH to claim bonus $TEMPLE when you enter the vault.
Can I transfer my FAITH to another wallet?
No. FAITH is an on-chain counter, not a token and is designed to be non-transferable.
How can I check how much FAITH I have?
You may check your FAITH balance by inputting your wallet address in the Dune Staking Calculator.
Will you reopen FAITH claims?
No, the window for FAITH claims is closed. Templars had months to collect their FAITH, and we want to reward those who have stayed engaged and active in the community. Those who already have FAITH in their wallets will be able to redeem FAITH for bonus $TEMPLE tokens.