What Is STAKE?
STAKE initially was a staking token utilized in the Proof-of-Stake consensus mechanism of the xDai chain. Apart from STAKE, a USD-pegged stablecoin was also a part of the xDai network. Make sure to check out the STAKE price chart above if you want to know the current (or previous) STAKE price.
xDai was founded in 2018 by a side-chain of Ethereum called the POA Network. The founder of the POA Network and the xDai chain is Igor Barinov. He has a degree in material and computer science. He also founded such companies as Hint Solutions and Profit Button. Besides, Barinov also worked at MTS Group, Insight Data Science, and Blocscout Technologies.
STAKE holders were able to stake their tokens in the POSDAO and EasyStaking protocols. The maximum yield was 15%, while the effective yield was 10%.
xDAI/Gnosis Merge
In November 2021, a proposal called GIP 16 was rolled out. It suggested that xDai should be merged with Gnosis in order to develop the Gnosis Chain. Gnosis is a branch of ConsenSys, which is a blockchain software technology company that provides a variety of business solutions and developer tools. There are plenty of DeFi applications developed on Gnosis.
After it was decided by the community that the merger should take place, the Gnosis Beacon Chain emerged. It essentially is an EVM-compatible beacon chain framework that aims to provide users with fast and low-cost transactions.
What Happened With STAKE Tokens After the xDAI/Gnosis Merge?
Holders of STAKE tokens had the chance to swap their tokens for GNO until May 31, 2022. GNO token was the native token of Gnosis. Now, it’s the new staking token of the Gnosis Chain. Overall, STAKE holders were given six months to exchange their tokens for GNO tokens.
During the period of six months, STAKE token holders were still able to yield rewards by staking STAKE tokens. However, after six months passed, they were not able to do that anymore since GNO tokens completely replaced STAKE tokens.
If you've looked at the aforementioned STAKE price chart above, you’ve noticed that the STAKE price tends to fluctuate. This is normal since all crypto assets fluctuate mostly due to the volatility of the entire crypto market.
