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๐ŸงฎRewards and Calculation formula

Discover how NodeK rewards are calculated on the Homnifi platform in our DeFi360 guide. Learn reward distribution methods and maximize your understanding for better participation.

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 Userโ€™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.

  • 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.

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 machineโ€™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.

โœ… 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.

โœ… 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:

โœ… 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:

Reward Calculation Formula:

  • Your daily reward is calculated based on your minting power, the number of linked tokens, and the reward rate.

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

0

4.99

0.00%

1

0

5

9.99

0.00%

1.050

0

10

14.99

5.00%

1.155

0

15

19.99

14.50%

1.328

0.01

20

24.99

27.30%

1.527

0.01

25

29.99

38.25%

1.757

0.01

30

34.99

47.51%

2.108

0.02

35

39.99

55.38%

2.530

0.03

40

44.99

64.30%

3.035

0.04

45

49.99

71.44%

3.643

0.05

50

54.99

77.15%

4.371

0.06

55

59.99

81.72%

5.245

0.07

60

64.99

85.38%

6.294

0.08

65

65.99

88.31%

7.553

0.09

70

74.99

90.65%

9.064

0.10

75

79.99

92.52%

10.876

0.11

80

84.99

94.02%

13.052

0.12

85

89.99

95.22%

15.662

0.12

90

94.99

96.18%

18.795

0.12

95

100

96.94%

22.553

0.12

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 ๐Ÿ“‰ (LYK Price Drops Compared to Yesterday)

  1. Calculate % Fall from ATH

  1. Inflation Adjustments Using "Prod Decrease %"

  1. Increase DLP Using Multiplier (From Inflation Rules)

Case 2: No Price Fall ๐Ÿ’น (LYK Price Maintains or Increases)

  1. Compare LYK Price with DLP

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.

Rewards Calculation for Auto linking On

  • Token Locked Value Calculation:

    • For Auto linking On, your Token Locked Value includes the rewards received in addition to the Linked tokens.

  • 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:

For further assistance or inquiries, consult our support documentation or contact our customer support team. Happy minting!

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