Staking Formula

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%