We are excited to reveal details of our staking rewards program. This is a program that gives stakers the opportunity to earn rewards as a direct result of revenue from the Coin Exchange platform. As a staker, you earn more $COIN as the Coin ecosystem grows!
By staking your $COIN and participating in the Coin staking program, you accrue rewards immediately. Each month Coin’s staking rewards will be calculated at 7% of the current $COIN in the staking reserve (21,785,714 $COIN). The first month’s rewards are 7%, approximately 1,525,000 $COIN, that will be distributed across all stakers. Each month thereafter, the smart contract will take 7% of the new staking reserve balance for distribution again. The staking reserve will continuously be refilled from $COIN buybacks from revenue on a weekly basis. In short, this means the more the Coin platform is used, the more you benefit. With that said, even with low initial volumes, rewards are high because of the initial balance in the Coin staking reserves. Your reward percentage will be calculated based on your contribution to the total staked $COIN on the network. Assuming 1,000,000 of $COIN is staked in total by all token holders in the network, and you have staked 100,000 $COIN, your return is 10% of the rewards.
Locked Staking — Bonus Rewards
To reward longer term holders, we have created incentives and additional rewards for holders that lock their $COIN. All $COIN stakers have the option to lock their $COIN for a 30-day period to be eligible for additional staking reward bonuses. More specifically, a reward tied to the trading volume on the Coin Exchange that drives further usage and adoption across the platform.
So how does this work?
Simple. Just stake your tokens and select the option to lock them. After the 30-day period expires, your $COIN stays staked, but they are auto-removed from Bonus Reward eligibility until they are manually reconfirmed with a new 30-day lock. Bonus Rewards are distributed out weekly to all eligible locked stakers (assuming the weekly trading volume goal has been met). Initially, the Coin Exchange weekly volume goal will start at $500,000, and will be automatically adjusted for the next week’s goal based on the previous week’s volume. For example, if we achieve $500,000 in trading volume, the next week our volume goal is 10% more, $550,000. However; if it drops to $300,000, then the goal becomes $330,000 for the next week. If the weekly volume goal is achieved, we will then distribute a fixed percentage of that week’s total $COIN buyback to all locked $COIN stakers. Initially we will start with a promotional percentage of 50% of the week’s total $COIN buyback to encourage initial interest in locked staking during lower volume periods. Please note that this percentage will be lowered over time. In the event that you would like to stake more $COIN, the new staking lots enter a separate 30-day lock period. The bonuses will be distributed on a schedule of 7 days following achieving the weekly goal.
We built a sample calculator to help you view the potential rewards associated with the program here.
Building Towards a DAO
While the Coin team will set the initial variables related to the rewards, over time the intent is to give control over to the Coin community. This means you have the opportunity as a community member to adjust the percentages and rewards through DAO governance. We anticipate the following variables will have the ability to be changed through governance:
- Volume Period
- Exchange Trading Fees
- $COIN Staking Distribution %
- $COIN Staking Distribution Time
- $COIN Staking Lock Periods
- $COIN Bonus Rewards Buyback %
- Volume Goal Growth Percentage
While these features will not be available initially our goal with Coin is to give the Coin community control to make the ecosystem even more valuable.
Below you will find answers to some frequently asked questions.
When can I create my Coin Wallet?
The official launch date of the Coin wallet is Monday, December 21.
When can I stake my $COIN?
You will be eligible to stake your $COIN once you have created your $COIN wallet, and transferred your $COIN to the wallet.
How do I stake?
Staking will require creating a wallet on the Coin platform, and transferring your $COIN to the Coin wallet. From the Coin wallet, you will have the option to stake any of your $COIN in our staking rewards smart contract.
How are rewards distributed?
Rewards are distributed from a rewards smart contract that exists as a part of your Coin wallet. The staking rewards, and potential bonus rewards, will be claimable to your Coin wallet and you can either stake the rewards, or transfer them to a new wallet.
How are rewards calculated?
Coin has an initial staking reserve of 21,785,714 $COIN. At the start of each month 7% of the total amount of $COIN in the staking reserve will be sent to the rewards contract. The initial amount of $COIN being distributed will be 1,525,000 $COIN. This amount will be distributed over the next month, which roughly correlates to 50,833 $COIN each day, over a 30 day period, 2,118 $COIN an hour, 35.3 $COIN a minute , or 0.588 $COIN a second. Your rewards will be calculated by your Individual Percentage of Total Staked. Individual Percentage of Total Staked = Your Number of $COIN Staked / Total Number of $COIN Staked.
This gives us the simple formula:
Total $COIN Distribution * Individual Percentage of Total Staked or % Staking Reserve Distribution * $COIN Staking Reserve * ( Individual Number of $COIN Staked / Total Number of $COIN Staked).
How do I get the bonus rewards?
You will have the option to lock your $COIN for a 30-day period in your $COIN wallet. This means for the duration of the lock period you will not be able to access your locked $COIN, but by doing so, you will be eligible for the bonus rewards. If you aren’t actively trading, and just holding, this is an opportunity to really grow your $COIN holdings. Bonus rewards will also be locked until the end of your locked period.
How are bonus rewards calculated?
Every transaction that takes place on the Coin platform will have 0.5% of the transaction shared to the $COIN staking reserve. At the end of the week $COIN is bought back, and added to the staking reserve. The total of this buyback is shared with the locked $COIN stakers. Initially this Reward Multiplier will be 50% of the total of the $COIN buyback.
This gives us the simple formula:
($COIN Buyback This Week * Reward Multiplier) * (Individual Number of $COIN Locked / Total Number of $COIN Locked).
If my $COIN is locked do I still get normal rewards?
If you lock your $COIN for 30 days you will continue to accrue your percentage of the monthly $COIN distribution. This staking reward is unchanged by locking or leaving unlocked. Locking simply makes you eligible for the bonus rewards.
Can I unlock early?
No, once you lock your $COIN it cannot be unlocked until 30 days after you initially locked it.
Can I unlock my rewards early?
Your rewards will also be locked until the end of the 30-day locking period. But don’t worry you will be able to see your rewards as they accumulate.
What happens after 30 days of being locked?
At the end of the 30-day period your $COIN is removed from the lock. While unlocked you are not eligible for the bonus rewards, but you will continue to earn staking rewards until you remove the $COIN from the staking smart contract. If you choose to do so, you can immediately lock your staked $COIN for another 30-day period.
What happens if I want to lock more $COIN, when I already have locked $COIN?
Each $COIN lock request has a 30-day timer. If you want to lock more $COIN, the new lot request will start a new 30-day timer for the new $COIN locked amount.
Are my rewards auto-staked?
No as the process is not automated and Coin does not have access to your wallet. You are in full control of your wallet, and you will need to create a new staking request for any $COIN tokens that are not currently staked included rewards.
For more information, please visit our website.
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