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Staking Rewards
We are introducing our staking as a mechanism to reduce & burn the $SNK tokens in circulation in order to regulate equilibrium price,
P2>P1P2 > P1
. We may or may not, introduce liquidity staking in the future.
The staking reward system is based on a simple interest formula, with some modifications, you may find further in this document:
F(c,t)=c(1+pt)F(c, t) = c(1 + pt)
where
cc
is the principle (tokens staking),
pp
is the daily interest which is set to 0.002,
tt
is the staking period in days and
FF
is the future value of
cc
. Since that in Snook's ecosystem we continuously burning tokens, we will face a given point of time that we would like to reduce the incentive or disincentivize as the total supply might be too low. To reduce the incentive for staking when total supply
SS
decreases, we replace
pp
with
pep_e
, defined as:
pe=pSS0p_e = {p \cfrac{S}{S_0}}
where
S0S_0
is total supply at the TGE (contract deployment) and
SS
is total supply at a given time. Replacing
pp
with
pep_e
in the simple interest formula, to get:
F(c,t)=c(1+pSS0t)=c(1+pet)F(c, t) = c(1 + {p \cfrac{S}{S_0}} t) = c(1 + p_et)
The minimum time of staking is 30 days. During that period the staked tokens are locked in a staking contract. The maximum time of staking
tt
is 90 days to prevents old aged stake to dominate the staking rewards. At the end of the staking period, the rewards to be sent with the initial staking back to the staker, thus resetting the staking period to 0.
30t9030 \le t \le 90
The total appreciation principle:
RT(c,t)=F(c,t)c=cpetR_T (c, t) = F(c,t)-c = cp_et
The staking rewards being calculated and locked at the beginning of every staking reward cycle, which is approximately 30 days, and the total reward itself is set to 10% of total funds in the treasury. That said, the total appreciation principle allocated from that portion
TT
and therefore its a subject to:
RT(c,t)=cpetTR_T (c, t) = cp_et \le T
from which a maximal value of
cc
follows:
cmax=Tpetmaxc^*_\text{max} = {\cfrac{T}{p_et_\text{max}}}
Since we want to disperse the staking between at least 100 different stakers, we have set
Nmin=100N_\text{min} = 100
and from that maximal stake for participant is:
cmax=cmaxNmaxc_\text{max} = {\cfrac{c^*_\text{max}}{N_\text{max}}}
We also want to set some entry threshold for the stakers, so we have defined a minimal value of stake:
cmin=0.001cmaxc_\text{min} = 0.001c_\text{max}
As stated at the top of the page, when people participating in our staking mechanism not only they are awarded with some rewards but they also, directly helping to burn some of the total supply. The current burn rate
bb
is set to 10% of total
RTR_T
, which is interest generated through the staking period. Therefore, the final reward assigned to the staker is:
R=(1b)RTR = (1 - b)R_T
When the tournaments are opened, the system selects random stakers every season and awards them with a tournament ticket. You can read more about it in the tournaments section.
Last modified 2mo ago
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