# Rewards and Calculation formula
This section provides detailed formulas and explanations on the factors influencing your daily minting rewards, including minting assets, minting power, and price fluctuations of LYK tokens.
## **Rewards Calculation for Auto Linking Off**
### **Step 1: Determine Each User’s Tokens and locking Limit**
* **Locked tokens Calculation:**
* The Locked tokens are determined by the number of tokens you linked and the price of LYK tokens at the time of linking.
{% hint style="success" %}
**Formula***:*
`Tokens locked =(Day 0 Token count * Day 0 link price) + (Day 2 Token count * Day 2 link price) + (Day N Token count * Day N link price)`
{% endhint %}
* **Staking Limit:**
* The maximum number of tokens you can stake depends on the chosen machine and is limited by your available tokens relative to the current price of LYK tokens.
{% hint style="success" %}
**Formula*****:***
`Token Link Limit =(machine $ Link Limit - Total $ Token locked for the user) / Current LYK Price`
{% endhint %}
### **Step 2: ATH Calculation**
* **All Time High (ATH):** The ATH represents the highest price of LYK recorded for a machine since its purchase or linking event. The system continuously updates this value based on specific conditions.
**When is ATH Updated?**
* When a machine is purchased (Initial ATH is set).
* During daily reward calculations (If a new high is reached).
* When linking collateral (ATH is recalculated if basis the weighted average method).
#### **ATH Calculation Scenarios**
**Scenario 1: Machine Purchase (Setting Initial ATH)**
When you purchases a machine, the system records the **current live LYK price** as the machine’s initial ATH.
**Steps to Set Initial ATH:**
1. Fetch the live LYK price at the time of machine purchase.
2. Assign this price as the **initial ATH** for the machine.
✅ **Example:**
* Machine purchased at LYK Price = **$1**
* Initial ATH **= $1**
**Scenario 2: Daily Reward Calculation (Checking for New ATH)**
Each day, during the **reward calculation process**, the system checks if the live LYK price exceeds the current ATH.
{% hint style="success" %}
**Logic*****:***
`If Live LYK Price > Current ATH → New ATH = Live LYK Price`
`Else → ATH Remains Unchanged`
{% endhint %}
✅ **Example:**
| **Day** | **LYK Price** | **Current ATH** | **New ATH** |
| ------- | ------------- | --------------- | ----------- |
| Day 1 | $1 | $1 | $1 |
| Day 2 | $2 | $1 | $2 |
| Day 3 | $1.8 | $2 | $2 |
#### **Scenario 3: Staking Event (Adjusting ATH with Weighted Average)**
When a you link additional collateral, the system compares the LYK price at that time with the current ATH:
**ATH Update Logic:**
{% hint style="success" %}
**Logic*****:***
`If Current ATH ≤ LYK price at Linking → No change to ATH`
`If Current ATH > LYK price at staking → Recalculate ATH using Weighted Average Formula`
{% endhint %}
{% hint style="success" %}
**Weighted Average Formula:**
`New ATH = [(Current LYK Price * New Linked Tokens) + (Current ATH * Previous Linked Tokens)] / (New Linked Tokens + Previous Linked Tokens)`
{% endhint %}
✅ **Example Calculation:**
| **Day** | **Event** | **LYK Price** | **Current ATH** | **New ATH** |
| ------- | ----------------- | ------------- | --------------- | -------------------- |
| Day 0 | Machine Purchased | $1 | $1 | $1 |
| Day 2 | No Linking | $2 | $1 | $2 |
| Day 3 | Link 1000 tokens | $3 | $2 | $2 |
| Day 6 | Link 500 tokens | $1.5 | $4 | $3.16 (Weighted Avg) |
### **Step 3: Reward Calculation**
#### **Daily Reward Calculation:**
Rewards are calculated daily at 00:00 UTC. The key factors involved in the calculation are:
The system monitors LYK price fluctuations daily:
{% hint style="success" %}
**Logic:**
`If the Current LYK Price < Yesterday’s LYK Price →`` ``Price Fall`
`Else →`` ``No Price Fall`
{% endhint %}
#### **Reward Calculation Formula:**
* Your daily reward is calculated based on your minting power, the number of linked tokens, and the reward rate.
{% hint style="success" %}
**Formula:**
`Daily Reward = Total Tokens locked Value * Total Minting Power * Inflation Adjustments * 0.7`
{% endhint %}
#### **Inflation Adjustments (DLP Calculation and Inflation Rules):**
This Inflation Rules defines the adjustments to **Production Rewards, DLP, and Minting Boost** based on the percentage drop in LYK price.
| | | | | | |
|---|
| From Drop % | To Drop % | Prod Decrease % | DLP Multiplier | Minting Boost | Prod. Decrease % | Increase DLP % |
| 0 | 4.99 | 0.00% | 1 | 0 | 0% | 0% |
| 5 | 9.99 | 0.00% | 1.050 | 0 | 0% | 5% |
| 10 | 14.99 | 5.00% | 1.155 | 0 | 5% | 10% |
| 15 | 19.99 | 14.50% | 1.328 | 0.01 | 10% | 15% |
| 20 | 24.99 | 27.30% | 1.527 | 0.01 | 15% | 15% |
| 25 | 29.99 | 38.25% | 1.757 | 0.01 | 15% | 15% |
| 30 | 34.99 | 47.51% | 2.108 | 0.02 | 15% | 20% |
| 35 | 39.99 | 55.38% | 2.530 | 0.03 | 15% | 20% |
| 40 | 44.99 | 64.30% | 3.035 | 0.04 | 20% | 20% |
| 45 | 49.99 | 71.44% | 3.643 | 0.05 | 20% | 20% |
| 50 | 54.99 | 77.15% | 4.371 | 0.06 | 20% | 20% |
| 55 | 59.99 | 81.72% | 5.245 | 0.07 | 20% | 20% |
| 60 | 64.99 | 85.38% | 6.294 | 0.08 | 20% | 20% |
| 65 | 65.99 | 88.31% | 7.553 | 0.09 | 20% | 20% |
| 70 | 74.99 | 90.65% | 9.064 | 0.10 | 20% | 20% |
| 75 | 79.99 | 92.52% | 10.876 | 0.11 | 20% | 20% |
| 80 | 84.99 | 94.02% | 13.052 | 0.12 | 20% | 20% |
| 85 | 89.99 | 95.22% | 15.662 | 0.12 | 20% | 20% |
| 90 | 94.99 | 96.18% | 18.795 | 0.12 | 20% | 20% |
| 95 | 100 | 96.94% | 22.553 | 0.12 | 20% | 20% |
#### **Set Base DLP:**
When a user stakes for the first time, the **live LYK price** at that moment is recorded as:
* **Base DLP (Dynamic Level Price)** = LYK Price at Machine Purchase.
#### **DLP Adjustments Based on Price Changes:**
**Case 1: ****Price Fall** :chart\_with\_downwards\_trend: (LYK Price Drops Compared to Yesterday)
1. Calculate % Fall from ATH
{% hint style="success" %}
**Formula:**
`% Fall: (ATH - LYK Price) / ATH`
{% endhint %}
2. Inflation Adjustments Using "Prod Decrease %**"**
{% hint style="success" %}
**Formula:**
`Inflation Adjustment % : 1 - Prod Decrease %`
{% endhint %}
3. Increase DLP Using Multiplier (From Inflation Rules)
{% hint style="success" %}
**Formula:**
* `DLP = Base DLP * DLP Multiplier`
{% endhint %}
**Case 2: ****No Price Fall** :chart: (LYK Price Maintains or Increases)
1. Compare LYK Price with DLP
{% hint style="success" %}
**Logic:**
* `If` `LYK Price >= Current DLP →`
* `Base DLP = LYK Price`
* `Rewards Reset to 100% (Inflation Adjustment = 1)`
* `Else →`
* `Keep Existing DLP`
* `Maintain Previous Inflation Adjustment %`
{% endhint %}
#### **Total Minting Power:**
* Total Minting power is determined by your chosen machine Base minting power and Minting Boost:
* **Base Minting Power**: Its the minting power of the chosen machine and remains fixed once defined.
* **Minting Boost** calculated hourly and is common for all users and purchases made during the given hour.
* It is applicable to the overall NodeK program.
* At the launch of NodeK the minting boost will be 0.00%.
* When the LYK price falls, the % fall in last hour is used to fetch the boost value from the Inflation rules added in earlier section.
* All machines purchased are applied with the ongoing Minting boost during that hour.
{% hint style="success" %}
**Formula:**
`Total Minting Power = Plan's Base Minting Power + Minting boost`
{% endhint %}
## **Rewards Calculation for Auto linking On**
### **Step 1: Determine Each User’s Token Locked value and link Limit**
* **Token Locked Value Calculation:**
* For Auto linking On, your Token Locked Value includes the rewards received in addition to the Linked tokens.
{% hint style="success" %}
**Formula:**
`Total Token locked value = (Previous Day token amount) + (Previous Day $ Rewards)`
{% endhint %}
* **Daily Auto Linking**:
* Rewards from the previous day are added to your token locked value amount daily and summed into the linked equivalent token at the prevailing LYK price for that day.
**Step 2: Reward Calculation**
* The calculation logic is the same as for Auto linking Off without the 30% reduction.
* **Reward Calculation:**
{% hint style="success" %}
**`Formula:`**
`Daily Reward = Total Tokens locked Value * Total Minting Power * Inflation Adjustments`
{% endhint %}
For further assistance or inquiries, consult our support documentation or contact our customer support team. Happy minting!
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