# Summary

In order to enable *delegated* collator staking via KILT’s [parachain-staking pallet](https://github.com/KILTprotocol/kilt-node/blob/develop/pallets/parachain-staking/src/lib.rs) while keeping the original the token distribution and release schedule, the Pendulum/Amplitude team proposes to burn 36 million AMPE tokens, which will be used for rewarding collators through issuance.

# Proposal

1. Amplitude chain has a maximum supply of 200 million AMPE (part of this supply is allocated to collator staking rewards to maintain the network) 
2. At genesis, Amplitude already issued the 200 million AMPE
3. KILT’s staking pallet `parachain-staking` — which allows AMPE holders to delegate their tokens to collators — by default rewards collators via *inflation,* i.e. issuance of new tokens.
4. In order to introduce the `parachain-staking` pallet and enable delegated collator staking, **we propose to burn 36 million AMPE, which will then be released as rewards to collators and delegator’s.**

The changes are mainly *technical* and will *effectively* make no changes to the planned tokenomics.

- The Pendulum/Amplitude team wants to enable delegated collator staking.
- They propose to burn 36 million AMPE tokens and use them as rewards for collators.
- This will not change the planned token distribution and release schedule.
- The changes are technical and won't affect anything else.
- They want to introduce the `parachain-staking` pallet for this.

#915 Proposal: introduce delegated collator staking

No Active Proposals