GAYA employs a staking mechanism that dynamically calculates Annual Percentage Yield (APY) to balance rewards and network security. The APY encourages active participation while avoiding excessive inflation.
Formula for APY Calculation:
APY (%) = (Annual Reward Pool / Total Tokens Staked)×100
Annual Reward Pool: Total GayaCoins allocated for staking rewards in a year.
Total Tokens Staked: Sum of all tokens locked in staking contracts.
Dynamic Adjustment Factor:
To maintain balance, the APY adjusts based on staking participation:
Adjusted APY = Base APY × (1− Total Staked Tokens/Circulating Supply)
This ensures lower staking rates yield higher individual returns, incentivizing additional participation.
Example Scenario:
Annual Reward Pool = 50,000,000 GayaCoins
Total Tokens Staked = 1,000,000,000 GayaCoins
APY (%) = (50,000,000/1,000,000,000) × 100 = 5%
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