Staking Rewards

Eligibility for staking rewards is tied to staking $CAP tokens. The staking pool could be capped, to the maximum of staked $CAP of 250,000 for example. The staking pool's allocation would also be filled by the "first-come, first-served" principle.

70% of the collected platform fees are consolidated at the end of each recurring 262,956 Polygon (PoS) block period (roughly 7 days), swapped to $CAP and are then distributed to $CAP stakers per block over the next 262,956 block period.

Each $CAP staker would be able to withdraw their staking rewards and supply anytime. This creates space for other $CAP token holders to stake their tokens until the staking pool limit is reached again.

Example:

$$APR=(0.7*r_a*price)/stCAP$$

r_a: Platform fees (annualized): $1,000,000

r_p: $CAP Reward Pool for Stakers: $700,000 worth of $CAP (70% of $1,000,000 platform fees)

price: Price of $CAP: $1.00

stCAP: Current amount of $CAP staked: 250,000

Reward per $CAP: 2.8 (700,000/250,000)

APR: 280%

Please note that the APR varies according to the generated revenue and the amount of $CAP staked. The calculation does not include transaction - or other third-party costs!

Seed NFTs as Staking Rewards boosters

As already described in theSeed NFTs section, each member can receive almost 10% higher staking rewards by having Seed NFTs in their wallet. Every Seed NFT has a property Staking Reward Boost with a value of 1 - 10.

The percentage increase in staking rewards is calculated like this:

$P(x) = 10 * (1-2^{-(x/60)})$

Where x is the sum of the Staking Reward Boostvalues of the Seed NFTs in the stakers wallet and P(x) is the percentage wise increase in staking rewards.

Here is an example:

Community member Alice has 5 Seed NFTs in her wallet with the values 3, 5, 8, 2 and 7 for the Staking Reward Boost property. Staked tokens of Alice will generate 2.5% additional staking rewards:

$P(x) = 10 * (1-2^{-(3+5+8+2+7)/60}) = 2.5$.