Airdrop Reward Weight

How Airdrop Rewards are calculated

Protocol Airdrop Calculation Documentation

Overview

The protocol implements an airdrop mechanism that rewards GENE stakers with new tokens. The distribution is weighted based on both the amount staked and the duration of the stake, incentivizing longer-term staking commitments.

Airdrop Reward Weight Formula

The core of the airdrop calculation is the Airdrop Reward Weight, which is calculated for each staking position using the following formula:

$$\text{Airdrop Reward Weight} = \text{Amount Staked} × 5^{\text{days locked remaining}/365}$$

The global reward weight (G) is the protocol sum of all users' airdrop reward weights:

$$G = \sum_{i=1}^n W_i$$

Where n is the total number of staking positions and W is each user's airdrop reward weight.

This formula creates an exponential relationship between lock duration and rewards, significantly favoring longer-term stakers.

The formula indicates that the airdrop reward weight changes daily for everyone as the number of days remaining in the lock period decreases. As a result, the exponential benefit of a longer lock period diminishes over time. However, users have the option to relock their stake at any time, effectively resetting the "days locked remaining" and boosting their stake weight. This feature encourages ongoing long-term commitment from participants.

Distribution Mechanism

The actual number of airdrop tokens a staker receives is determined by their proportional share of the global airdrop reward weight:

$$\text{Individual Airdrop Amount} = \left( \frac{\text{Individual Reward Weight}}{\text{Global Reward Weight}} \right) \times \text{Total Airdrop Amount}$$

Where:

• Individual Reward Weight: The calculated reward weight for a specific staking position

• Global Reward Weight: The sum of all stakers' reward weights

• Total Airdrop Amount: The total number of tokens being distributed in the airdrop

Example Calculations

Basic Example

Consider the following scenario:

1. Total airdrop amount: 400,000,000 tokens

2. Global reward weight: 1,000,000

3. Your staking position:

   • Reward weight: 5,000 (1,000 GENE staked for a year)

Your airdrop allocation would be:

(5,000 ÷ 1,000,000) × 400,000,000 = 2,000,000 tokens

Complex Scenarios

Let's examine several staking positions to understand how different parameters affect rewards:

Scenario 1: Impact of Lock Duration

Consider five stakers with the same amount but different lock periods:

Staker A:

• Amount staked: 1,000 GENE

• Lock duration: 30 days

• Reward weight: 1,000 × 5^(30/365) = 1,418.5

Staker B:

• Amount staked: 1,000 GENE

• Lock duration: 180 days

• Reward weight: 1,000 × 5^(180/365) = 3,623.6

Staker C:

• Amount staked: 1,000 GENE

• Lock duration: 365 days

• Reward weight: 1,000 × 5^(365/365) = 5,000

Staker D:

• Amount staked: 1,000 GENE

• Lock duration: 548 days (1.5 years)

• Reward weight: 1,000 × 5^(548/365) = 8,660.3

Staker E:

• Amount staked: 1,000 GENE

• Lock duration: 730 days (2 years)

• Reward weight: 1,000 × 5^(730/365) = 25,000

This demonstrates how longer lock periods exponentially increase the reward weight:

• A 1-year lock (365 days) results in a 5x multiplier

• A 1.5-year lock (548 days) results in approximately 8.66x multiplier

• A 2-year lock (730 days) results in a 25x multiplier

This demonstrates how longer lock periods exponentially increase the reward weight. A full year lock (365 days) results in a 5x multiplier. A 2-year lock (730 days) results in a 25x multiplier.

Scenario 2: Multiple Staking Positions

Consider a user with multiple staking positions:

Position 1:

• Amount: 500 GENE

• Lock duration: 90 days

• Weight: 500 × 5^(90/365) = 871.8

Position 2:

• Amount: 1,500 GENE

• Lock duration: 180 days

• Weight: 1,500 × 5^(180/365) = 5,435.4

Total user weight = 871.8 + 5,435.4 = 6,307.2

Scenario 3: Global Distribution Example

Let's calculate actual token distribution with multiple participants:

Given:

• Total airdrop: 100,000 tokens

• Three participants:

  1. Weight: 5,000 (20% of global)

  2. Weight: 15,000 (60% of global)

  3. Weight: 5,000 (20% of global)

• Global weight: 25,000

Token allocation:

1. Participant 1: (5,000/25,000) × 100,000 = 20,000 tokens

2. Participant 2: (15,000/25,000) × 100,000 = 60,000 tokens

3. Participant 3: (5,000/25,000) × 100,000 = 20,000 tokens

This example shows how the proportional distribution ensures the sum of all distributions equals the total airdrop amount.

Important Notes

• The exponential nature of the formula (base 5) means that longer lock periods have a significant impact on the reward weight

• Rewards are proportional, meaning your share of the airdrop depends not only on your staking position but also on the staking behavior of other participants

• The global reward weight is dynamic and changes as users modify their staking positions