Staking Model
Staking Model
The Nord AI staking model is designed to reward users who actively support the ecosystem by staking their tokens, with higher incentives for longer commitments. This model ensures a sustainable balance between user rewards and platform growth, with rewards distributed exclusively in ETH.
Staking Cap
To maintain sustainability and prevent oversaturation, staking is capped at 40% of the total supply (80 million tokens). This ensures rewards remain consistent and proportional to user contributions.
Lock-Up Durations and APY
Users can stake their tokens for flexible lock-up durations, with rewards increasing for longer commitments.
Lock-Up Period
APY
30 Days
6% (base rate)
60 Days
8% (base rate)
90 Days
10% (base rate)
This tiered approach incentivizes users to commit to the ecosystem for longer periods while ensuring accessibility for all participants.
Reward Distribution in ETH
Rewards are distributed exclusively in ETH every 2 weeks, providing users with transparent and liquid benefits. Users can choose to:
Claim ETH Rewards: Withdraw the ETH allocated to their staking position, reflecting the value of their rewards.
Reinvest ETH Rewards: Use the allocated ETH to purchase Nord AI tokens, which are automatically added to their staking balance. This enables compounding growth while maintaining the ETH payout mechanism.
Emergency Withdrawal
Users who need to unstake their tokens before their lock-up period ends can perform an emergency withdrawal. However, this action incurs a 25% penalty on their staked amount, which is redistributed as follows:
50%: Added to the staking rewards pool, boosting rewards for other stakers.
50%: Allocated to the project development fund to support the ecosystem.
Dynamic APY Scaling
The APY adjusts dynamically based on the total amount of tokens staked to ensure sustainability:
Less than 30% of the total supply staked (60 million tokens): Full APY is applied (6–10%).
Between 30–40% of the total supply staked (60–80 million tokens): APY scales down slightly (4–8%).
This scaling mechanism ensures that the staking pool remains balanced, even during periods of high participation.
Key Benefits
Flexibility: Users can choose lock-up durations and decide whether to claim or reinvest their ETH rewards.
Sustainability: A capped staking pool, dynamic APY scaling, and penalty mechanisms ensure long-term viability.
Liquidity: ETH payouts provide users with immediate, liquid rewards.
Emergency Access: Emergency withdrawals provide an option for unstaking while maintaining ecosystem integrity through penalties.
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