Staking Roles
The protocol uses a multi-layered staking design that creates skin-in-the-game at every level:Circle Admins
Circle Admins stake $P2P to operate merchant networks.- Their stake is slashable for misbehavior
- A portion of their rewards is locked as an insurance buffer
- They earn 8.89% of protocol revenue for their operational work
Merchants
Merchants stake USDC as working capital for order fulfillment.- Their capacity is bounded by their stake
- Larger stakes enable handling larger orders
- They earn the majority of revenue (53.33% combined with delegators)
Delegators
Delegators stake $P2P to Circles to earn a share of revenue.Only delegation to $P2P-denominated Circles grants governance voting rights.
- Earn portion of the 53.33% revenue share
- Participate in protocol governance through their staked tokens
- Can delegate to multiple Circles
Staking Benefits
Revenue Sharing
All staking participants earn from protocol transaction fees
Governance Rights
Delegators to $P2P Circles get voting power on protocol decisions
Network Security
Slashable stakes ensure good behavior from Circle Admins
Capacity Scaling
Merchant stakes determine their order fulfillment capacity
Skin in the Game
The staking design ensures every participant has capital at risk:- Circle Admins: $P2P stake subject to slashing
- Merchants: USDC working capital locked for orders
- Delegators: $P2P staked for revenue share and governance