💱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 Price

  • Example: 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 Linked

• Example:

  • 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) / BLV

• Outcomes:

  • 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 % * 0.4

• 24M or Max Period:

  Rewards = Total Minting Utility Tokens Linked * Max Daily Reward %

• Bifurcation:

  LYK-W = Rewards * 0.6
  LYK-R = Rewards * 0.4

• Hardware 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.