Staking

Staking is the process of locking coins for a certain period, making them unavailable for trading. This mechanism supports decentralization and provides rewards to participants.

In the EYWA protocol, staking involves locking tokens in the DAO locker. Rewards are accrued every epoch and are tied to each user’s EYWA DAO NFT. Accrual occurs at the start of the new epoch for the previous one. In EYWA DAO, the epoch length is one week, with the end of the epoch at Wednesday 24:00 UTC and the start of the epoch at Thursday 00:00 UTC.

By using the “Compound” transaction, a user can add the earned rewards to the corresponding EYWA DAO NFT, in order to add them to the principal of your position and earn compound interest.

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More details on reward calculations per epoch are provided below.

Distribution of Rewards Among DAO Participants

Each epoch, a fixed number of EYWA tokens (), is allocated for DAO participant rewards. This amount depends only on the total number of locked EYWA tokens in that epoch. All calculations, including the number of locked tokens and the calculated veEYWA, are performed at the end of the epoch. The allocated rewards are then distributed among participants proportionally to their share of veEYWA.

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Algorithm for Calculating Rbase at the Start of DAO Operations

1. Calculating the ratio of all locked EYWA tokens in this epoch to the total possible volume of EYWA tokens (1,000,000,000):

$$Ratio_{Locked EYWA} = \frac{V_{Locked EYWA}}{1 000 000 000}$$

1. If is less than 0.14, then is calculated as:

$$R_{base} = Ratio_{Locked EYWA}*i*Inflation+Inflation*0.01$$

, where

$$i = (3-Ratio_{Locked EYWA}*9)$$

Inflation - the emission amount in the calculation epoch.

1. If is greater than or equal to 0.14, then is calculated as:

$$R_{base} = Ratio_{Locked EYWA}*i*Inflation+Inflation*0.18752$$

, where

$$i= (0.5 - Ratio_{Locked EYWA}*0.2)$$

Inflation - the emission amount in the calculation epoch.

All numerical coefficients indicated in the formulas are current at the time of DAO launch. They can be changed by DAO participants via voting.

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Staking APY Table with 10 Million Locked Tokens Increments

For convenience, we have prepared tables with results grouped by different levels of locked token amounts.

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Distribution of Rewards Among DAO Participants

After determining the total amount for all users (), it is distributed among DAO participants proportionally to the amount of veEYWA each participants holds.

$$R_{User Base} = \frac{L_{user}}{L_{all}}*R_{base}$$

, where

- the user’s veEYWA,

- the total veEYWA of all users,

- the total reward allocated to all participants.

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