Staking

All governance systems tend to converge towards a specific consensus model, which involves pluralism-based voting. This is because solving large-scale coordination challenges requires incentivizing participants—be they "users," "nodes," or "validators"—to cooperate. Once bound by a set of rules, participants prefer the stability that these systems offer as they ultimately ensure a steady source of income in the future.

Considering this, Tornado Cash's governance community prioritizes protocol and service stability. Therefore, mechanisms must be in place to incentivize participants to set up systems anchored around core protocol contracts. These contracts serve as intermediaries between the protocol and users. This setup is especially crucial due to the relayers' fee dilemma, which mandates a third party to supply ether for Tornado transactions' withdrawal phase.

Since implementing Proposal #10, TORN tokens have been able to offer these incentives. Frontends now allow selecting relayers who have voluntarily joined a registry by staking TORN. Similar to validators, these relayers must stake their tokens to be listed. This ensures they appear on frontends irrespective of the service host.

This setup primarily aims to support IPFS deployment, envisioned as a fully censorship-resistant, decentralized frontend enduring even in adverse situations. Combined with the previous system, IPFS should effectively manage relayer sybil issues.

The fee mechanism requires relayers to lock a specified amount (currently 2000 TORN). With each withdrawal, a registry fee (currently 0.3% of the relayer's set fee) is subtracted from their locked balance. This fee is then proportionally distributed to TORN holders staked in the Governance vault contract. Relayers need to maintain a balance above the minimum threshold (currently 500 TORN) to maintain active status and receive recommendations on the frontend.

Governance can adjust the listing amount, registry fee, and minimum balance as deemed necessary.

How to Stake TORN token ?

First, connect your wallet to Tornado Cash.

As mentioned above, the process to lock TORN tokens has remained unchanged.

• It happens here ➡ https://tornadocash.eth.limo/governance , by clicking on Manage, then going on the Lock tab

• The governance contract need to be approved in order to allow the transfer of your tokens to the smart contract. To do so, you need to click on the Approve button

• Once the approval is confirmed, you can chose the amount of token to lock, then click on Lock

• All you have to do after that is to confirm the transaction in your wallet & wait for the confirmation to come through

How to Claim Your Staking Reward ?

Now that your TORN tokens have stayed nice & warm locked in the governance contract, you are able to claim your staking reward. How to do that? Everything is still happening here https://tornadocash.eth.link/governance

As soon as you log in the page, you will be able to see your staking reward at the top, just waiting for you to collect it 💰

• Click Manage -> Claim tab -> Claim button.

That's it, we're done, easy peasy lemon squeezy