Staking
Learn what staking means in Loot V2.
Last updated
Learn what staking means in Loot V2.
Last updated
As LootBot evolves with its v2 roadmap, we're excited to introduce our new Staking mechanism, a restructure and reunite of all aspects of LootBot's rewards and revenue distribution system.
The staking contract is the immutable component in the Loot v2 ecosystem as it is designed to create a balanced system where long term contributions are recorded and rewarded accordingly.
Staking reward is being paid out weekly at around Monday 9 AM UTC.
A key feature of the staking contract is the accumulation of points. Each stake is assigned a weight based on two key factors: the amount staked and the duration of the stake. Larger stakes receive a higher weight. Longer staking periods also contribute to a higher weight. For instance, staking for 6 months could be more beneficial than staking for 1 month in terms of points accumulated.
These points are accrued based on these metrics and offer users benefits and privileges within the LootBot ecosystem. Points are dynamically calculated and adjusted to ensure a sustainable flywheel for all parties involved.
The individual reward for a staker is calculated by determining their share of the total points. This is done by dividing the weight of an individual's points by the total points of all stakers.
Rewards are then distributed proportionally based on each staker's share of the total staking weight. This ensures that rewards are fairly allocated, with those contributing more (either by amount or duration) receiving a larger share of the rewards.
xLOOT holders are not required to stake their tokens as burning is already a form of perpetual staking. Each xLOOT are automatically given rights to claim rewards, revenue sharing and airdrop commissions. xLOOT holders can always check their relative points on the dashboard.
A total of 375,000 $LOOT tokens will be distributed as staking incentives for a duration of 3 months, starting from the staking launch. The rewards will be used to incentivize users to transition and learn about the new reward distribution system.