5.2 Stake-to Model & Staking Score
Last updated
Last updated
Wicrypt stake-to model means that staking $WNT tokens is not only tied with rewards but also amplifies users and hosts positive experience from being platform members.
Staking $WNT tokens and maintaining PoS deposit results in an accruing Staking Score, equal to the average amount of tokens held across a 12 months time period. For example, if someone is staking 2400 $WNT tokens for 6 month, the resulting staking score will be 1200 (2400/12*6).
Please refer to the table below to better understand staking score accrual:
While standard staking models only incentivize stakers based on the amount of staked tokens, Wicrypt incentivisation policy adds the element of time involvement as well. Such an approach significantly reduces profitability of staking high amounts of tokens over a short period of time and greatly improves positions of long term token holders.
To better visualize the importance and fairness of such an approach, please refer to the example below:
Example: Janine has kept staking 1000 $WNT tokens during the last 12 months; her staking score is now equal to 1000 (1000x12/12). Andrew has decided to quickly stake 6000 $WNT tokens to participate in rewards distribution. His staking score after the 1st month is equal to 500. Despite stalking much less than Andrew, Janine is still twice as strong when it comes to rewards distribution, thanks to staking her tokens for a much longer time than Andrew.
Staking is available for any token holder. PoS deposits are treated equally as staked tokens when it comes to rewards calculation and distribution. Holders who already have staked some tokens or hosts with active PoS can always stake more, but ‘partial withdrawals’ are not possible.
Withdrawing staked $WNT tokens or PoS deposits can only be done in respect to the entire staked or locked amount and activates a so-called cooldown period. For classic stakers (non-host) such a period is equal to 7 days, after which they are asked to make a confirmation of their decision. Once that confirmation is made, all staked tokens are withdrawn. For more details on the PoS unstake cooldown period - please refer to the ‘Proof-of-stake (PoS)’ section of this document.
