Staking VAULTS (Distribution)
ShareFi's Weight & Timing Model: Our staking approach integrates weight and timing models to calculate and amplifying rewards.
Weight
Weight-Based Allocation with Token Holdings:
Weight-Based Allocation with Token Holdings is a mechanism used to distribute resources among different vaults based on the amount of staked tokens held by each user. In this context, the weight of a user's position is determined by the quantity of $TRADER tokens they have staked and their chosen vault timeframe.
Here's how the Weight-Based Allocation with Token Holdings can be explained: Weight-based Allocations:
In weight-based allocations, we attribute a value to the tokens staked by each participant. This value, known as "weight," acknowledges their contribution to the staking process. The concept is simple: the more $TRADER tokens a staker holds, the higher their weight.
Mathematically, let's say (Staker A) has 1000 $TRADER tokens and (Staker B) has 500 $TRADER tokens. (Staker A's) weight is higher due to their larger holdings. This higher weight leads to amplified influence when rewards are distributed.
Imagine the total rewards available are $10,000. (Staker A), with their higher weight, would receive a larger portion of these rewards compared to (Staker B). This recognizes the greater contribution and commitment made by (Staker A).
Weight-based allocations ensure that those who hold more $TRADER tokens have a more substantial say in the reward distribution. This system aligns with the principle of fairness, where dedication and higher stakes lead to impartial allocations.
Timing
Timing-driven Boosts: Staking isn't just about tokens—it's a commitment across time. Our model endows extended commitments with strategic boosts. Prolonged dedication yields more potent boosts, luring prolonged engagement.
This synergy of weight-based allocation and timing-driven boosts launches our staking model past convention. It forges an individualized path, acknowledging token holders and fostering a resilient community.
In forthcoming sections, delve into the mechanics behind this innovation, unraveling the blend that forms a pioneering, impartial reward framework. Exponential Proportional Distribution Formula:
The Exponential Proportional Distribution formula is used to allocate a total value among various categories in a way that the distribution is proportional to specific factors. In this case, we are applying this formula to distribute a total value among different "vaults" based on the assigned "boosts" for each category.
The formula is expressed as follows:
Where:
Boost Factor: Represents the increment associated with a specific category, such as a 3-month boost, 6-month boost, etc.
Sum of Boost Factors: Is the sum of all boost factors from different categories.
Total Value: Is the total value we want to distribute among the categories.
The formula works by taking the boost factor of a category and dividing it by the total sum of all boost factors. Then, this quotient is multiplied by the total value to determine the amount that will be allocated to that particular category.
This Exponential Proportional Distribution allows categories with higher boosts to receive a larger portion of the total value, which can lead to an exponential distribution of funds among different categories.
$1,000.00
3 Months
0.05
$142.86
6 Months
0.1
$285.71
12 Months >
0.2
$571.43
Total
$1,000.00
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