💱Rewards and Calculation Formula
CloudK rewards users with LYK-W (60%, withdrawable) and LYK-R (40%, rewards tokens) based on linked Minting Utility Tokens, linking periods, and hardware boosts.
This page details the reward calculation process and how to maximize rewards.
Reward Structure
LYK-W: 60% of total rewards, withdrawable to your wallet.
LYK-R: 40% of total rewards, non-withdrawable rewards tokens.
Linking Periods:
12 Months: 40% of calculated rewards.
24 Months or Max: 100% of calculated rewards.
Auto Linking: When ON, LYK-W rewards are auto-swapped to Minting Utility Tokens (1:1) and relinked.
Hardware Boost: Linked licenses receive a 10% reward boost proportional to NFT weightage.
Reward Calculation Steps
Step 1: Minting Utility Tokens and Limit Calculation
Minting Utility Tokens are calculated based on linked amounts and the LYK price at linking time.
Formula (Auto Compound OFF):
Total Minting Utility Tokens = (Tokens Linked Day 0 * Price Day 0) + (Tokens Linked Day N * Price Day N)Example:
Day 0: 1000 Minting Utility Tokens at $2 = $2000.
Day 7: 500 Minting Utility Tokens at $1 = $500.
Total Minting Utility Tokens: $2000 + $500 = $2500.
Auto Compound ON: Adds daily LYK-W rewards at current LYK price.
Linking Limit:
Max Tokens = (License Limit - Total Minting Utility Tokens) / Current LYK PriceExample: License limit $10,000, Minting Utility Tokens $5000, LYK price $2.
Max Tokens = (10000 - 5000) / 2 = 2500 Minting Utility Tokens
Step 2: Base Lock Value (BLV)
BLV is the weighted average price of linked Minting Utility Tokens.
Formula:
BLV = (Sum of (Tokens Linked * Linking Price)) / Total Tokens LinkedExample:
Day 0: 1000 Minting Utility Tokens at $2 = $2000.
Day 7: 500 Minting Utility Tokens at $1 = $500.
BLV = (2000 + 500) / (1000 + 500) = $1.66666.
Step 3: Price to Market (PTM)
Formula: PTM = Current LYK Price (daily market price).
Step 4: Percentage Price Change
Formula:
% Change = (BLV - PTM) / BLVOutcomes:
Increase: PTM > BLV.
No Change: PTM = BLV.
Fall: PTM < BLV.
Step 5: Growth Level Price (GLP)
Increase or No Change: GLP = PTM.
Fall: Reduce previous day’s GLP based on disqualification table (ceiling-rounded to nearest 5%):
GLP = Last GLP * (1 - Disqualified Reward %)Disqualification Table:
Disqualification Threshold (%)
Disqualified Reward (%)
0%
0.00%
5%
2.50%
10%
3.50%
15%
5.00%
20%
10.00%
25%
15.00%
30%
20.00%
35%
25.00%
40%
30.00%
45%
35.00%
50%
40.00%
55%
45.00%
60%
50.00%
65%
55.00%
70%
60.00%
75%
65.00%
80%
70.00%
85%
75.00%
90%
80.00%
95%
80.00%
100%
80.00%
Step 6: Daily Reward Percentage
Base Reward %: Determined by license lifetime (e.g., 1080 days: 0.741%, 709 days: 0.226%).
Scenarios:
Increase, No Change, or Fall <10%:
Daily Reward % = Base % * (1 + (Last GLP - PTM) / PTM)Fall ≥10%:
Daily Reward % = Base % * (1 - Disqualified Reward %)
Max Capping:
Max Daily Reward % = Minimum(Daily Reward %, Base %)
Step 7: Final Rewards
12M Period:
Rewards = Total Minting Utility Tokens Linked * Max Daily Reward % * 0.424M or Max Period:
Rewards = Total Minting Utility Tokens Linked * Max Daily Reward %Bifurcation:
LYK-W = Rewards * 0.6 LYK-R = Rewards * 0.4Hardware Boost: 10% of license rewards (proportional to NFT weightage) added to LYK-W and LYK-R.
Validations
Ensure LYK-W (60%) and LYK-R (40%) bifurcation is accurate.
Verify Auto Linking swaps LYK-W to Minting Utility Tokens at 1:1.
Confirm reward calculations align with linking period and hardware boosts.
Maximizing Rewards
Choose 24M or Max periods for 100% rewards.
Enable Auto Linking to relink LYK-W rewards.
Link licenses to hardware for a 10% boost.
Monitor price changes to optimize linking timing.
See Managing Licenses for linking actions or Managing Hardware for boost details.
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