Staking
About Staking
Last updated
About Staking
Last updated
Staking is a crucial component of the Gethar ecosystem, designed to support liquidity, encourage long-term user engagement, and create a sustainable project economy. It offers economic benefits to participants while maintaining interest in the platform, providing additional ways to interact with tokens.Within Gethar, users can convert their tokens into NFTs and earn rewards for:
Active participation.
Asset retention within the system.
Meeting specific conditions set by the platform.
This approach not only boosts community engagement but also creates additional incentives for long-term asset holding, which in turn helps to reduce market volatility. By rewarding users for staying active and committed to the platform, staking encourages a stable and growing economy within Gethar.
The token emission for staking is set at 40% of the total project supply (1,200,000,000 tokens). These tokens are distributed based on the following criteria:Activity-Based Rewards:Stakers receive rewards based on their contribution to the ecosystem and the duration for which they hold tokens within the system. The staking rewards decrease by 10% each year, helping to prevent excessive inflation while maintaining the token's value.Reward Reduction Formula:The reward reduction follows the formula:
Tokens distributed in the -th year = Initial amount (30M tokens in the first year)
(1 - 0.10) ^ Staking Year
Where:
Initial amount is 30M tokens in the first year.
Staking year refers to the current year of staking.
Daily Rewards:
Rewards are distributed every minute, allowing users to see their real-time earnings.
This system encourages active participation and engagement while also helping to reduce market predictability.
All rewards are calculated and distributed via smart contracts, ensuring accuracy and eliminating any manipulation of rewards.
The transparent, automated process gives users confidence that their earnings are handled securely and reliably.
By combining long-term incentives with transparency and predictable reward structures, Gethar ensures that staking remains a reliable and attractive option for users while maintaining the platform’s economic stability.
Smart Staking is an innovative approach that enhances the effectiveness of staking by using automatic decision-making based on user-defined conditions and platform mechanisms. It combines flexibility and automation, allowing users to optimize strategies to maximize their earnings.Key Features of Smart Staking:
Automatic Staking Participation: Users holding NFTs automatically become part of the Staking Pool. The percentage of their participation is calculated based on the rarity and level of the NFT, as well as other additional factors such as staking duration or other contributions.
Adaptive Distribution: The smart contract can adjust the token distribution strategy depending on market conditions and liquidity demand. This ensures that the rewards are distributed efficiently and fairly, even as the platform evolves.
Bonuses for Smart Stakers: Additional bonuses are provided for users who participate in smart staking, including increased rewards for activity and improved conditions for long-term participants. These bonuses incentivize users to stay engaged and hold their tokens for a longer period.
Risk Protection: Smart staking includes built-in mechanisms to protect against inflation and volatility. For example, the system can automatically "burn" tokens or redistribute them in response to market shifts, helping to maintain the platform's economic stability and prevent excessive token supply.
By combining automation, adaptability, and enhanced rewards, Smart Staking provides users with a more dynamic, profitable, and secure way to interact with the Gethar ecosystem. It empowers users to take control of their staking strategies while ensuring the system remains resilient in the face of market fluctuations.
To preserve the value of tokens, the following measures are implemented within the Staking system:
Inflation Control Mechanisms through Staking To preserve the value of tokens, the following measures are implemented within the Staking system:
Reward Reduction Over Time: To prevent excessive inflation, staking rewards are designed to decrease by 10% annually. This ensures that as the number of stakers grows, the distribution of rewards remains balanced and sustainable, preserving the value of the token over time.
Token Burning: A portion of tokens used for various activities (such as failed NFT upgrades or certain transactions) is burned. This reduces the overall supply of GTH in circulation, contributing to a deflationary mechanism that increases the scarcity of the token, boosting its value.
Adaptive Token Distribution: The smart contracts used in smart staking can adjust the distribution of tokens based on current market conditions and liquidity demand. This dynamic approach helps stabilize the supply and demand, reducing the risk of inflationary pressures caused by excessive token emissions.
Automatic Redistribution: In cases of market volatility or sudden demand changes, tokens may be redistributed or locked temporarily to ensure the overall economic stability of the ecosystem. This redistribution helps maintain balance and supports token value.
Market Liquidity Control: Through Staking Pools and cross-chain integration, the system can manage liquidity across different platforms, ensuring that there is no over-supply of tokens in any one exchange or market. This also helps in stabilizing token prices, preventing sharp fluctuations.Together, these inflation control mechanisms ensure that Gethar: Meet & Earn maintains a sustainable economy, where token value is preserved and stabilized, providing long-term value to users and stakeholders.
To minimize risks and motivate users, Gethar implements several additional mechanisms that promote both participation and stability:
Improvement Insurance: For 50% of the upgrade cost, users can increase their chances of success when upgrading NFTs, adding an element of risk management while encouraging participation.
Risk Management Flexibility: Smart staking allows users to set their own limits and strategies for managing risk, enabling personalized participation based on individual preferences and risk tolerance.
Events & Long-Term Rewards: 10% of tokens are allocated to user competitions (120,000,000 tokens), offering additional earning opportunities and incentives for active involvement.
Withdrawal Limits: To prevent manipulation and stabilize the market, a weekly withdrawal limit of 12,500 tokens per user is set. Part of the reserve tokens is also used to maintain liquidity on the platform.
Transparency: All processes are governed by smart contracts, eliminating manipulation or changes to rewards, ensuring the integrity of the staking mechanism.
Automation: Users can set their staking strategies with minimal intervention, allowing for easier management of long-term participation.
Maximized Profit: Flexible reward distribution and bonus mechanisms enhance user earnings, allowing users to optimize their staking rewards.
their staking rewards.Security: Smart contracts eliminate human error and subjective risks, ensuring the staking process is both secure and reliable.
The staking mechanism is fundamental to Gethar’s economy. Users can hold (or "stake") their GTH tokens within the ecosystem to receive regular rewards. Staking is deeply integrated into the user process: active participation in Gethar itself is essentially staking, where earnings are enhanced through game-related factors (such as NFT bonuses).
However, it’s important to control reward emissions to prevent hyperinflation of the token. Gethar employs a declining reward model:
Annual Reward Reduction by 10%: The base reward amount for staking decreases by 10% each year compared to the previous year. For example, if 30 million tokens are distributed in the first year, the second year will distribute 27 million, the third will be 24.3 million, and so on. This smooth reduction encourages early participants but slows down new token emission over time.
Additional 15% Reduction Every 2 Years: In addition to the annual 10% decrease, every two years there is a planned increase in mining difficulty, reducing all future rewards by an additional 15%. This introduces a stepwise reduction to further control token supply. For example, after the third year, and again at the fifth year, a multiplier of 0.85 will be applied to rewards.
Example:
Year 1 reward = 30,000,000 GTH
Year 2 reward = 30,000,000 × 0.9 = 27,000,000 GTH
Year 3 reward = 27,000,000 × 0.9 × 0.85 = 20,655,000 GTH
This model ensures a gradual decrease in token emission, helping to maintain scarcity and increase GTH’s value over time.
Continuous Reward Calculation: Staking rewards are calculated continuously (technically, every minute in the smart contract). Users can see the tokens accumulated in real-time. All calculations are fully automated and processed on the blockchain (via Soroban contracts), ensuring accuracy and transparency—no one can covertly change the rules or misappropriate rewards.
It’s important to note that staking in Gethar is not just passive token storage. The platform introduces “smart staking”, where:
NFT character holders automatically become part of the staking pool.
Their share and rewards depend on game-related factors, such as the rarity and level of their NFTs, the design of their room, and other in-game achievements.
This creates a unique synergy: players are more involved in the process because the better they play and develop their NFTs, the higher their staking rewards in GTH tokens.
This system encourages active gameplay and NFT collection, enhancing both the game experience and earning potential, while stabilizing and boosting the ecosystem's value over time.
