About BusyDAO Engine staking and phases
The Busy staking model differs from the standard staking models. The reason is simple: Busy benefits active users and naturally eliminates non-active users. This is one of the main parts of the unique BusyDAO engine. You can read more about the life-cycle phase from the Platform perspective here.
General staking details
From the crypto and staking perspective: staking (staking limit and the reward) depends on the staking phases (life-cycle phases).
- The staking limit is automatically reduced by 50% in each phase. The limit indicates the number of coins required for staking. Therefore, if the staking limit is set to 10 000, you must have at least 10 000.001 BUSY (staking limit + fee 0.001 BUSY) in your Busy wallet.
- Staking reward is set to 32.7–33.2% p.a.; Staking reward is affected by the holding time of the coins, i.e., the time for which the user holds the coins. Each year does not have the same time period, so that staking rewards can vary within the given deviations.
- The staking reward is counted from each staking address based on the staking limit.
- Staking reward = staking limit * 33%
- The staking reward has to be claimed manually by the user, from each staking address (claim) or from all at once (claimAll).
Example #1 – Phase 1:
Current Phase: 1
The staking limit is 10 000 BUSY
You have 2 staking addresses, each with 10 000 BUSY.
1st staking address: 10 000 * 33% = 3 300 BUSY as reward per year
2nd staking address: 10 000 * 33% = 3 300 BUSY as reward per year
Total reward per year = (reward from the 1st staking address) + (reward from the 2nd staking address) = 6 600 BUSY
Phases details – what is changing?
Staking phases are automatically checking the total number of staking addresses in the Busy Ecosystem, and based on the pre-defined numbers; phases are changing:
Pre-defined staking phases:
Phase 1: Number of staking addresses = 1 000; Staking Limit = 10 000 BUSY
Phase 2: Number of staking addresses = 2 000; Staking Limit = 5 000 BUSY
Phase 3: Number of staking addresses = 4 000; Staking Limit = 2 500 BUSY
Phase 4: Number of staking addresses = 8 000; Staking Limit = 1 250 BUSY
…
From the above, the phase transitions generally mean that with each transition, the number of staking addresses is multiplied by 2 (x2), and the staking limit is reduced by 2 (/2) => you would need to have 50% less BUSY coins to create a staking address.
All together in examples – staking vs phases
Phase 1 – nothing to worry about
If staking addresses were created in the same phase, it works as standard staking models. You are receiving 33% p.a. from each staking address.
Phase X – make it or don’t make it
If staking addresses were created in the other phase than the current one, even through you have staked more coins, you have started to earn 33% p.a. only from the specified staking limit for the current phase. If the difference is more significant (for example, Phase 1 vs Phase 5), the reward is much less. The user’s action is required if he is interested. Check the examples below.
Example #1 – Phase 1
Current Phase: 1
The staking limit is 10 000 BUSY (for Phase 1)
You have 2 staking addresses, each with 10 000 BUSY (both created in Phase 1)
1st staking address: (staking limit * 33%) = 10 000 * 33% = 3 300 BUSY as reward per year
2nd staking address: (staking limit * 33%) = 10 000 * 33% = 3 300 BUSY as reward per year
Total reward per year = (reward from the 1st staking address) + (reward from the 2nd staking address) = 6 600 BUSY
Example #2 – Phase 1 vs Phase 2
Current Phase: 2
The staking limit is 5 000 BUSY (for Phase 2)
You have 2 staking addresses, each with 10 000 BUSY (both created in Phase 1).
1st staking address: (staking limit * 33%) = 5 000 * 33% = 1 650 BUSY as reward per year
2nd staking address: (staking limit * 33%) = 5 000 * 33% = 1 650 BUSY as reward per year
Total reward per year = (reward from the 1st staking address) + (reward from the 2nd staking address) = 3 300 BUSY (3 300 BUSY less than in Example #1, just because no action was taken with phase transition)
Example #3 – Phase 1 vs Phase 3
Current Phase: 3
The staking limit is 2 500 BUSY (for Phase 3)
You have 2 staking addresses, each with 10 000 BUSY (both created in Phase 1).
1st staking address: (staking limit * 33%) = 2 500 * 33% = 825 BUSY as reward per year
2nd staking address: (staking limit * 33%) = 2 500 * 33% = 825 BUSY as reward per year
Total reward per year = (reward from the 1st staking address) + (reward from the 2nd staking address) = 1 650 BUSY (4 950 BUSY less than in Example #1, just because no action was taken with phase transition)
So what is necessary to achieve the same reward?
It is simple, claim the rest of the “not necessary” coins and create new staking address/es.
Staking details
You can always check the BusyScan Staking section to see the Current Phase, Staking Limit, and a Total number of staking addresses – https://explorer.testnet.busydao.io/staking.
