ETHGas is designed to provide Buyers with more choices with order execution, and Validators with an off-the-shelf suite of products that will provide them with higher yields. Staking enables participants to voice or influence the degree to which they would like the protocol to prioritize certain users, be it paying less transaction fees, earning higher APYs, or earning a larger share of protocol fees. Staking also rewards $GASS tokens for those participating in the ETHGas ecosystem.
Direct ysers are those that interface with the ETHGas protocol namely the Gas Buyers (i.e. Traders) , and the Gas Sellers (i.e. Validators). In these cases, we look at staking as a mechanism to either reduce fees or increase APYs.
Gas Buyers invariably want lower transaction fees. Depending on what they stake, and how long they stake, they can lower these fees significantly. They can:
Stake ETH, and pay less transaction fees
Stake $GASS, and pay less transaction fees
Stake longer, and pay less transaction fees
Gas Sellers (Validators)
Validators want higher APYs. The Validator landscape is highly competitive having an extreme sensitivity to APYs. If a Node has regular outages or otherwise sees a 10bps drop in yield, TVLs will fall considerably. Through Staking with ETHGas, Validators are now able to enhance their APYs vis-a-vis other Validators. They can:
Stake ETH, pess transaction fees, earn higher APYs
Stake $GASS, pay less transaction fees, earn higher APYs
Stake longer, pay less transaction fees, earn higher APYs
Stake a relatively higher proportion of ETH vs others, pay less transaction fees, earn higher APYs
See this spreadsheet for example calculations
While ETHGas affects all users on Ethereum, not all users directly interact with the protocol. For those indirect users, they may earn $GASS governance tokens and separately participate in ETHGas' share of Staking Fees where 30% of transaction revenues are reserved for the ETHGas Treasury's continued operations and up to the remaining 70% being distributed to stakers accordingly.
There are two multipliers for Indirect Users: Base Multiplier and Time Multiplier
The Base Multiplier:
ERC20 Token Stakers earn 1x share of rewards
ETH and ETH Variant Stakers earn a 2x share of rewards
$GASS Stakers earn a 10x share of rewards
The Time Multiplier:
Rewards are a function of the staking-time, that is, the longer one has staked, the higher rewards one is entitled to. This is calculated as a weighted-average stakign time since the day of launch.
See this spreadsheet for example calculations