🔄Staking and Restaking
Staking on Parobot
Parobot's staking program is designed to enhance the network's security while rewarding its users for their contribution. Stakeholders of Parobot tokens can lock their tokens to not only secure the network but also partake in a daily reward pool. This program incorporates a thoughtful unlocking mechanism to encourage longer participation and secure staking:
Daily Rewards Distribution: Instead of a fixed reward per token model, Parobot allocates a daily total of 0.1 ETH among all stakers. The distribution is proportional to the amount each user has staked, promoting fairness and incentivizing substantial and sustained staking.
Unlocking Conditions:
Within the First 7 Days: Unlocking tokens within this period results in reclaiming just 25% of the original stake.
Day 8 to Day 14: If tokens are unlocked during this time, users can retrieve 50% of their staked assets.
Day 15 to Day 21: Unlocking tokens during this timeframe allows users to claim back 75% of their staked amount.
After Day 21: Beyond this threshold, stakers can unlock the entirety of their tokens, a full 100%. This structure rewards those who demonstrate the longest commitment to the network, aligning incentives with the health and stability of the ecosystem.
Example for Staking on ParobotScenario: Let's say Alice stakes 1,000 Parobot tokens. The total staked amount by all users for the day is 10,000 tokens.
Daily Reward Calculation: Given the daily reward pool is 0.1 ETH, Alice’s share of the daily rewards would be calculated based on her proportion of the total staked amount. Since she holds 10% of the total staked tokens for that day, she receives 10% of the 0.1 ETH reward pool, which is 0.01 ETH.
Unlocking Scenario: If Alice decides to unlock her tokens on the 10th day, she would only be entitled to retrieve 50% of her staked tokens, meaning she gets 500 tokens back
Restaking: The Parobot Innovation
Building upon the traditional concept of staking, Parobot introduces an innovative restaking system that further enhances the value proposition for our community members. Restaking is based on the principle of rewarding our stakeholders not just once, but twice. For every zkTAO token (ZAO) staked within the zkTAO ecosystem, users receive a special staking proof token, known as spZAO. This token represents a user's stake in zkTAO and can be claimed and restaked on the Parobot platform to earn additional Parobot tokens over time.
The restaking process is designed to be seamless and intuitive, allowing ZAO stakeholders to easily claim their spZAO tokens through the Parobot dApp. Once claimed, these tokens can be restaked in the Parobot system, initiating a new stream of rewards in the form of Parobot tokens. This innovative restaking mechanism not only deepens the integration between zkTAO and Parobot but also amplifies the earning potential for our users, making their investment in our ecosystem even more rewarding. The restaking program is designed to provide liquidity and flexibility:
No Unlocking Penalties: Users can choose to unlock their restaked spZAO tokens at any time without penalties or restrictions, offering a fluid experience for those looking to balance earning rewards with having access to their assets.
Example for Restaking MechanismScenario: Bob has 500 ZAO tokens staked in zkTAO and receives 500 spZAO tokens. He decides to restake them in Parobot.
Reward Eligibility: By restaking his 500 spZAO, Bob participates in a separate rewards pool specific to restakers. The rewards from this pool are distributed based on the amount of spZAO restaked, allowing Bob to earn additional Parobot tokens proportionally.
Liquidity and Flexibility: Should Bob need his assets, he can unlock his spZAO tokens at any moment without incurring any penalties, reflecting the program's design for user convenience and flexibility.
This comprehensive staking and restaking framework reflects Parobot's commitment to rewarding its community while fostering a secure and robust blockchain network.
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