# Stellar Union #### Background * Staking & Tokenomics have been mainstays in the majority of Solana NFT projects since its inception with pioneers such as Mindfolk and Boryoku Dragonz. It has been the primary method of value distribution to holders and is often expected of every project. * However, here at Stellar Drifters, we aim to continually innovate. We will not be afraid to make decisions that are unpopular if we believe it is the optimal choice. With that in mind, we will be introducing an age-old system of members and memberships. #### The Problem (Issues with Staking & Tokenomics) * To understand how we came about this conclusion, we have to first look into the original basis of NFT staking. * The idea was to ensure holders continued holding onto their NFTs as a yield generating asset. In return for staking, holders are rewarded with NFT tokens. * Staking also helps to maintain a certain amount of stability in listings. * However, a big issue with this, as we have seen over the past year is that projects have had to direct their attention towards ensuring tokens retain value. * Staking leads to an inflationary pressure on tokens which then leads to downward pressure on NFT floor prices. This has led to NFT floor prices being pegged to token value and in turn, making NFT tokens a major priority in project owners’ minds. Project owners feel the need to ensure token prices remain stable/rise, in order to increase the value of their NFTs. This means an uphill battle is fought from the first day staking is released, with project owners stressing over the need to provide utility to its token and ensuring stability in token prices. * We have seen this with various projects where LPs have been created and NFT floor prices were pegged closely to their respective token prices. As tokens are continuously generated and demand for utilities are insufficient to burn the resulting supply of tokens, it has often led to falling token prices and the eventual demise of the project. Therefore, in place of the usual staking & tokenomics employed by most projects, our project team has elected to go with a much simpler system of value distribution across our holders. We will be utilising a **Membership Tier model** as the central system. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://stellar-drifters.gitbook.io/stellar-papers/roadmap/stellar-union.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.