⛏️POS Mining
Overview of POS Mining Rules
Reward Source and Allocation:
Reward Source: Rewards in the POS pool are derived from 1% of SMT generated from GUP conversions.
Burning Mechanism: 20% of successfully staked SMT is permanently removed from circulation, entering a "black hole," effectively reducing the total supply.
Flexibility in Staking: Staking can be increased or redeemed at any time without restrictions.
Staking Units and Quantity Weight:
Staking Unit: Staking amounts must be in multiples of 10 SMT.
Quantity Weight: Based on the actual amount of SMT staked, accounting for the burn. For example, staking 100 SMT results in 80 SMT being counted towards staking weight after a 20% burn.
Reward Claim Rules:
Rewards can be claimed at any time, however, there must be a minimum interval of seven days between claims.
Time Weight System:
From the onset of staking, the weight increases by 20% every 20 days, doubling after 100 days to a maximum of 2x.
Weight levels are as follows:
1-19 days: 1x weight
20-39 days: 1.2x weight
40-59 days: 1.4x weight
60-79 days: 1.6x weight
80-99 days: 1.8x weight
100+ days: 2x weight
Note: Users must manually activate the next weight level to benefit from increased weights.
Calculation of Staking Weights
Staking weight is determined by two factors: Quantity Weight and Time Weight.
Quantity Weight: Based on the amount of SMT staked. For instance, staking 100 SMT gives a quantity weight of 100.
Time Weight: Increases according to the length of the staking period, as detailed in the time weight system above.
Example
Assume the following scenario for User A:
Initially, User A stakes 100 SMT for a duration of 20 days, then:
Quantity Weight = 80
Time Weight = 1.2
Total Weight = 80 x 1.2 = 96
On day 40, User A increases the stake by 100 SMT, bringing the total staked amount to 200 SMT, then:
Quantity Weight = 160
Time Weight = 1.4
Total Weight = 160 x 1.4 = 192
Reward Calculation Formula
Rewards are calculated based on the proportion of an individual's staking weight to the total weight in the POS pool:
Key Advantages:
Flexibility and Incentivization Combined: By offering flexible rules for redeeming and increasing stakes along with time-weighted incentives for long-term staking, we encourage sustained user participation.
Control of Inflation: The burning mechanism effectively controls token supply, fostering stable growth in token value.
Incentivizing Loyalty and Participation: The time-weighted incentive mechanism ensures that long-term and loyal users receive greater rewards, enhancing community engagement.
Reward Distribution
The SMT rewards claimed are distributed to both the LP (Liquidity Provider) store and the circulating supply, with details available for review on the platform.
This framework encourages long-term and incremental staking, ensuring fairness and transparency in the incentive system provided by the SMARTMALL platform.
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