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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