Example Calculations

Example 1: Optimal Scenario (Long Duration, Favorable Market)

Given Values:

  • BaseRate: 6% (0.06)

  • AmountStaked: 20,000 VDX

  • StakingDuration: 12 months

  • MarketPerformance: Strong (PerformanceFactor = 1.2)

  • Liquidity: High (LiquidityFactor = 1.1)

Calculations:

  • Initial Reward: Reward = 0.05 × 20,000 × 1 = 1,000 VDX

  • Adjusted Reward considering MarketPerformance: AdjustedReward = 1,000 VDX × 1.1 = 1,100 VDX

  • Final Reward with Liquidity Adjustment: FinalReward = 1,100 VDX × 1.05 = 1,155 VDX

Governance Weight:

  • GovernanceWeight = AmountStaked × DurationFactor

  • Assuming a DurationFactor of 1.2 for 12-month staking: GovernanceWeight = 20,000 × 1.2 = 24,000

  • This results in significantly increased governance influence due to long-term staking.

Example 2: Average Scenario

Given Values:

  • BaseRate: 3% (0.03)

  • AmountStaked: 10,000 VDX

  • StakingDuration: 6 months (0.5 year)

  • MarketPerformance: Average (PerformanceScore = 1.0)

  • Liquidity: Medium (LiquidityAdjustment = 1.0)

Calculations:

  • Initial Reward: Reward = 0.03 × 10,000 × 0.5 = 150 VDX

  • Final Reward considering adjustments: FinalReward = 150 VDX × 1.0 = 150 VDX

Governance Weight:

  • With a shorter DurationFactor of 1.05 for 6 months: GovernanceWeight = 10,000 × 1.05 = 10,500

  • Moderate governance influence reflecting average staking commitment.

Example 3: Challenging Scenario (Short Duration, Volatile Market)

Given Values:

  • BaseRate: 1% (0.01)

  • AmountStaked: 5,000 VDX

  • StakingDuration: 3 months

  • MarketPerformance: Weak (PerformanceFactor = 0.8)

  • Liquidity: Low (LiquidityFactor = 0.9)

  • Calculations:

    • Initial Reward: BaseReward = 0.01 × 5,000 × 0.25 = 12.5 VDX

    • Performance and Liquidity Adjustment: FinalReward = 12.5 VDX × 0.8 × 0.9 ≈ 9 VDX

    Governance Weight:

  • Lower DurationFactor of 1.01 for 3 months: GovernanceWeight = 5,000 × 1.01 = 5,050

  • Limited governance influence due to shorter staking period and smaller amount.

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