Introducing Staking Rewards
Oftentimes, when taking part in a crypto project’s staking program, one is required to lock a serious bit of tokens up in this or that smart contract. We at ethbox want to give our community the best possible service & experience, so we thought that through — And came up with a model for staking rewards that’s both safe and easy to use.
When locking tokens inside a smart contract for any sort of bonus program, the worst case that can happen is getting both your tokens and your reward taken from you. Without that, the absolute worst case is getting no reward at all — Still not nice, and something that’ll never happen with ethbox, but we prefer not forcing our users to trust us (or anyone else) more than they absolutely have to.
In order to operate as trustlessly as possible, ethbox lets everyone with more than a certain amount of EBOX in their wallet automatically participate in our staking program. It’s as simple as that!
How Does It Work?
The share rate is used for calculating each user’s individual share among the entirety of EBOX tokens that are being given away as staking rewards, and will be explained in detail further on.
Users holding 5,000 EBOX or above are assigned a base share rate of x1. Users holding 50,000 EBOX or above are assigned a base share rate of x2. Users with less than 5,000 EBOX do not participate in the staking reward program (base share rate = 0).
Staking period (from one payday to the next) is one month, during which the minimum of 5,000 EBOX / 50,000 EBOX needs to be held at all times. When a user’s balance drops below one of those threshold values, the share rate is adjusted / nullified for the current staking period.
Staying true to our roots, we offer all DuckDAO members (holding 200 DDIM or 20,000 DUCK, or above) an extra +10% share rate.
Liquidity Provider Bonus
EBOX tokens that have been used for liquidity providing also count towards the staking program. When locking 5,000 EBOX tokens or more for liquidity, users get an appreciative reward of +20% share rate.
Our long-term supporters will be rewarded with an extra bonus that even grows with time: Starting from the second consecutive month of staking up to the tenth consecutive month, long-term stakers get a growing bonus on their share rate. The bonus then stays constantly peaked at the highest level until staking ends, or one decides to leave the staking program.
- Month 2: +5% share rate
- Month 3: +10% share rate
- Month 4: +15% share rate
- Month 5: +20% share rate
- Month 6: +25% share rate
- Month 7: +30% share rate
- Month 8: +35% share rate
- Month 9: +40% share rate
- Month 10: +50% share rate
In order to calculate everyone’s staking, ethbox keeps track of all EBOX holders’ balances. Each balance is assigned a base share rate of x1 or x2, which can further be modified by the aforementioned bonuses.
18% of the total EBOX supply (65,000,000) have been allocated for staking, which makes for a total of 11,700,000 over a period of 4 years, equaling 243,750 EBOX being given away as staking rewards each month.
These monthly 243,750 EBOX are split among all participating users proportionally to the amount of EBOX tokens being held, multiplied with the user’s respective share rate.
Staking Reward Calculation
Variables used in the calculation of users’ staking rewards:
Calculating any individual user’s share rate:
Bonuses are applied in the form of a multiplicator, such as * 1.10 for a +10% bonus.
Calculating the total share rate across all participating users:
Reward user proportionally:
Each 15th of the month, rewards are calculated and made available to participating users to be claimed directly (and only) through ethbox.org. The corresponding section on our website is not online yet and will be announced once released.
Counting days for staking rewards started at EBOX token generation on the 25th of March 2021, and the first payday will happen on the 15th of May 2021 (for the entire period from 25th of March to 15th of May).
Anything that goes on inside & around ethbox’s staking program will be fully disclosed at ethbox.org, including openly available data on users’ EBOX balances that is collected from the blockchain, each user’s staking reward and the share rate that was used for calculating the reward.
The integrity and validity of data used for calculating staking rewards can be verified at any time using blockchain explorers such as Etherscan.
When holders’ EBOX balances drop below 5,000 EBOX, participation in the staking program is stopped, and long-term bonus progression restarts. Previously accumulated rewards that have not yet been claimed do not expire.
Internal ethbox wallets containing supplies of EBOX token (for paying staking rewards, liquidity providing bonus etc) do not participate in any reward / bonus program.