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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,
$P2 > P1$
. 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:
$F(c, t) = c(1 + pt)$
where
$c$
is the principle (tokens staking),
$p$
is the daily interest which is set to 0.002,
$t$
is the staking period in days and
$F$
is the future value of
$c$
. 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
$S$
decreases, we replace
$p$
with
$p_e$
, defined as:
$p_e = {p \cfrac{S}{S_0}}$
where
$S_0$
is total supply at the TGE (contract deployment) and
$S$
is total supply at a given time. Replacing
$p$
with
$p_e$
in the simple interest formula, to get:
$F(c, t) = c(1 + {p \cfrac{S}{S_0}} t) = c(1 + p_et)$
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
$t$
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.
$30 \le t \le 90$
The total appreciation principle:
$R_T (c, t) = F(c,t)-c = cp_et$
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
$T$
and therefore its a subject to:
$R_T (c, t) = cp_et \le T$
from which a maximal value of
$c$
follows:
$c^*_\text{max} = {\cfrac{T}{p_et_\text{max}}}$
Since we want to disperse the staking between at least 100 different stakers, we have set
$N_\text{min} = 100$
and from that maximal stake for participant is:
$c_\text{max} = {\cfrac{c^*_\text{max}}{N_\text{max}}}$
We also want to set some entry threshold for the stakers, so we have defined a minimal value of stake:
$c_\text{min} = 0.001c_\text{max}$
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
$b$
is set to 10% of total
$R_T$
, which is interest generated through the staking period. Therefore, the final reward assigned to the staker is:
$R = (1 - b)R_T$
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.