An In-Depth Look into the Bluzelle Staking Economics

This article was first published on The Blueprint by Bluzelle - Medium

How Your Daily Rewards are Calculated

Participants from our Soft Mainnet may have already experienced that staking rewards are distributed on a daily basis. And instead of receiving a fixed amount of rewards, the rate fluctuated.

This is because Bluzelle’s staking economics are designed differently than other systems. It is designed in such a way that it will:

  • Encourage loyalty
  • Encourage tenure
  • Encourage larger stakes

In this guide, we go more in-depth of how the daily rates are calculated by showcasing a series of scenarios.

Types of Rewards in the Bluzelle Network

There are two types of rewards that validators & delegators can get.

  1. Network fees that are generated from all network transactions and will be shared among all participants in proportion to their stakes. Validators are allowed to get commissions from delegators. It shows up under the “reward” section in the staking dashboard. Participants are required to “claim reward” manually from the staking dashboard.
  2. Staking rewards that the Bluzelle team has purposely allocated to incentivise the community to participate in the network at early stage. It is distributed on a daily basis and will show up directly on your available balance (not under the “reward” section on the dashboard).

⚠️ Disclaimer: this article will only refer to the second type.

Daily Yield

The targeted APY for Bluzelle staking is 25% APY. This is equivalent to 0.06115% daily yield. We also assume that all staking rewards are re-invested diligently, which means as soon as you receive your staking rewards, you stake all of them back into the pool.

Every day, our mechanism guarantees that the total rewards for the whole community pool is 0.06115%. That means if the whole pool has 10 million tokens staked, the total reward pool for the day will be 6115 BLZ....

To keep reading, please go to the original article at:
The Blueprint by Bluzelle - Medium

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