🚀COT Staking
Discover how the COT staking works
Staking pool contract: 0x732Cd261A6b86dC68D1eFFD9D9855A4488C38796
The COT staking implements a linear staking mechanism.
This mechanism means that the longer a user stakes their tokens, the more rewards they will earn, as long as they stake for at least the minimum locking time required by the contract and less than maximum allowed per each user.
In the context of Treedefi’s $COT, staking means participating in the Binance Smart Chain network, which employs a Proof of Stake (PoS) consensus mechanism. This involves committing a certain quantity of $COTs, which are then locked or “staked” in a smart contract on the network.
In Treedefi’s case, we utilize a linear staking system. The linear nature of the system indicates that the longer you stake your tokens, and the more tokens you stake, the more rewards you earn, up to the maximum limit per user.
COT Staking pool recap
| Parameter | Value |
|---|---|
Reward Rate | 20% |
Duration | 1 year |
Start date | Mon, 17 July 15.30 CET 2023 |
Block start number | |
Block end number | |
Max COT allowed | 100,000 COT |
Locking time | 30 days |
How we calculate rewards
Treedefi employs a linear staking mechanism. This means that the rewards earned by a user are directly proportional to the amount of tokens they stake and the duration of the stake. Hence, the longer you stake your tokens, the more rewards you accrue.
To give you a better understanding, if you stake X tokens for Y duration (in days), your rewards (R) can be calculated using the formula: R = X * 20% * (Y/365).
To calculate the reward for staking 1000 tokens for different durations, we can use the formula: R = X * 20% * (Y/365), where:
R is the rewards
X is the number of tokens staked (1000 in this case)
Y is the duration of the staking period in days.
For example, If you stake for 365 days (1 year):
R = 1000 * 20/100 * (365/365) = 200 tokens
| Staking Duration | Calculation | Rewards |
|---|---|---|
7 days (1 week) |
| ~3.84 tokens |
30 days (1 month) |
| ~16.44 tokens |
90 days (3 months) |
| ~49.32 tokens |
180 days (6 months) |
| ~98.63 tokens |
365 days (1 year) |
| 200 tokens |
How locking time works
In our staking system, every time you stake tokens, a minimum lock time of 30 days is applied to your stake. This lock time starts from the day you perform the staking operation and ends exactly 30 days later. During this period, you cannot unstake your tokens.
The locking mechanism is cumulative. This means, if you make another stake within the original 30-day lock period, an additional 30-day lock period will be added to your stake. The lock time does not restart from the date of the new stake, instead, it's an additive process.
Here are some examples to clarify:
Example 1: If you stake on January 1st, you cannot unstake until January 31st.
Example 2: If you stake on January 1st and then again on January 15th, your new unlock date will be February 14th.
Example 3: If you stake on January 1st, again on January 15th, and yet again on January 30th, your new unlock date will be March 1st.
Remember, these examples are provided assuming the lock time is 30 days.
It's important to carefully plan your staking, considering this lock time, as you will not be able to access your tokens during this period. The purpose of this locking mechanism is to ensure stability in the pool and to provide a predictable reward distribution schedule for all stakers.
We hope this explanation helps you understand our token lock time feature better. If you have more questions, feel free to reach out to us.
Pool limits
Max COT Allowed The term "Max COT allowed: 100,000" in the pool signifies the maximum capacity of the staking pool. In this case, the staking pool is designed to hold up to 100,000 COT tokens. This limit helps manage the pool's size and ensure the stability and security of the staking system.
Once this limit is reached, no more tokens can be staked in the pool until some of the currently staked tokens are unstaked or removed. This feature enables a more equitable distribution of rewards among the stakers and helps prevent the pool from being monopolized by a small number of large holders.
It's important to note that each stake is considered separately; if a staker has multiple stakes, each of them must respect the pool limit. For example, if the limit is 100,000 COT tokens and a staker already has 50,000 COT tokens staked, they can only stake an additional 50,000 COT tokens until some of their initial stake has been removed.
In essence, the 'Max COT allowed' limit serves as a protective measure, ensuring that the pool maintains its integrity and serves its purpose effectively, which is to incentivize token holders to participate in the network by staking their tokens, and in return, earning rewards for their participation.
End date
The "end date" in a staking pool, in this context, represents the block number at which the reward distribution ends, thus marking the end of the staking period. It's a crucial parameter because it sets the timeframe during which the stakers can earn rewards. After the end date, the stakers will no longer receive any new rewards for their staked tokens, though they can still unstake their tokens.
In our pool, the "Block end date: 40555000" is calculated with an estimation considering the BNB Chain average block time. This means that the reward distribution for the staking pool is set to last until the 40555000 block of the BNB Chain blockchain, which is estimated to occur on 16th July 2024.
Keep in mind that while the end date/block sets a finite period for the staking reward distribution, it does not necessarily require stakers to withdraw their tokens at that time. Unstaking tokens can generally occur at any time after the minimum staking period (lock time), but the rewards will not increase after the end block.
It's also important to note that in some cases, the end date/block might be adjusted by the contract admin to extend the staking period or to add more rewards to the pool, but such changes would be subject to the specific rules and restrictions defined by the smart contract.
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