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Xai Chronicle

Treasury Staking Meets a Dilution Objection

Liquid staking had briefly lifted the community’s mood, but the ecosystem proposal forum now faced another question about allocating resources. A violent move in Hong Kong stocks shook sentiment, and altcoins gave back gains. The proposal would turn idle reserves into potential staking capital and brought the relationship between pool size and individual shares into focus.

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Liquid staking had briefly lifted the community’s mood, but the ecosystem proposal forum now faced another question about allocating resources. Members cared not only about putting funds to work, but also about who would receive the resulting rewards.

A violent move in Hong Kong stocks shook sentiment, and altcoins gave back gains. On the same day, Gauntlet and Aera proposed putting idle XAI from the foundation treasury into community staking pools. Under their proposal, higher pool tiers would raise everyone’s returns, while 100% of staking rewards would flow back to the community. The first objection in the replies was blunt: “Dilution.”

The proposal would turn idle reserves into potential staking capital and brought the relationship between pool size and individual shares into focus. Supporters wanted to trace where rewards would go; opponents first wanted to understand what would happen to their share. Each part of the proposal still needed explanation.