SPN Staking Model
SPN token & staking
The SPN token is a pivotal component of the Sapiens economy through the ‘stake-to’ model. Users can stake their SPN tokens and aggregate so-called staking score - average amount of tokens staked during the last 12 months. Increasing staking score unlocks user levels (from 1 to 5), linked with progressively higher discounts and benefits .
The calculation of the staking score is encapsulated in the following formula:
Users can increase their staking score through two methods:
Gradually (through standard staking): Users move their tokens into a vault, earning a staking score based on the amount and duration of the stake. Tokens can be withdrawn after a 48-hour cooldown period.
Instantly (through lockups): Tokens can be locked for 1 to 12 months, providing an immediate staking score boost for the lockup duration. Early exit incurs a 30% fee (decreased proportionally to the amount of remaining lockup time).
The following 3 tables illustrate how staking score behaves in different scenarios - standard staking, 6 month lockup and 12 months lockup.
Standard Staking Score Accrual
6-Month Lockup Staking Score Accrual
12-Month Lockup Staking Score Accrual
Benefits of Staking
Higher user levels unlock greater discounts
Enterprise access level is only available to top-level stakers.
Stakers receive discounts on node licenses
Increasing user level decreases the revenue cap on licenses nodes
Stakers receive SPN rewards
Higher level receive more SPN rewards
Please refer to the table below summarizing staking benefits and user Tiers
Staking and lockup vault features
Users can increase their stake at any time.
Withdrawals must encompass the entirety of the staked amount; partial withdrawals aren't allowed, to prevent gaming the system.
Withdrawing resets the staking score to zero.
Users may initiate multiple lock-ups (minimal amount of SPN tokens per single lockup is 1000)
Lock-up periods for individual positions can be extended, which resets the lock-up timeframe.
Lock-ups operate independently from standard staking and from one another. Users can hold multiple distinct lock-ups, such as 1000 SPN for 1 month and 5000 SPN for 6 months.
The staking scores from various vaults accumulate, reflecting the total SPN staking score associated with specific Sapiens Badge
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