🧮Rewards 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.
Last updated
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.
Last updated
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.
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.
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)
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.
Formula:
Token Link Limit =(machine $ Link Limit - Total $ Token locked for the user) / Current LYK Price
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).
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:
Fetch the live LYK price at the time of machine purchase.
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.
Logic:
If Live LYK Price > Current ATH → New ATH = Live LYK Price
Else → ATH Remains Unchanged
✅ Example:
Day
LYK Price
Current ATH
New ATH
Day 1
$1
$1
$1
Day 2
$2
$1
$2
Day 3
$1.8
$2
$2
When a you link additional collateral, the system compares the LYK price at that time with the current ATH:
ATH Update Logic:
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
Weighted Average Formula:
New ATH = [(Current LYK Price * New Linked Tokens) + (Current ATH * Previous Linked Tokens)] / (New Linked Tokens + Previous Linked Tokens)
✅ 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)
Rewards are calculated daily at 00:00 UTC. The key factors involved in the calculation are:
The system monitors LYK price fluctuations daily:
Logic:
If the Current LYK Price < Yesterday’s LYK Price → Price Fall
Else → No Price Fall
Your daily reward is calculated based on your minting power, the number of linked tokens, and the reward rate.
Formula:
Daily Reward = Total Tokens locked Value * Total Minting Power * Inflation Adjustments * 0.7
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
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.
Case 1: Price Fall 📉 (LYK Price Drops Compared to Yesterday)
Calculate % Fall from ATH
Formula:
% Fall: (ATH - LYK Price) / ATH
Inflation Adjustments Using "Prod Decrease %"
Formula:
Inflation Adjustment % : 1 - Prod Decrease %
Increase DLP Using Multiplier (From Inflation Rules)
Formula:
DLP = Base DLP * DLP Multiplier
Case 2: No Price Fall 💹 (LYK Price Maintains or Increases)
Compare LYK Price with DLP
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 %
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.
Formula:
Total Minting Power = Plan's Base Minting Power + Minting boost
Token Locked Value Calculation:
For Auto linking On, your Token Locked Value includes the rewards received in addition to the Linked tokens.
Formula:
Total Token locked value = (Previous Day token amount) + (Previous Day $ Rewards)
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:
Formula:
Daily Reward = Total Tokens locked Value * Total Minting Power * Inflation Adjustments
For further assistance or inquiries, consult our support documentation or contact our customer support team. Happy minting!