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 Tokens can be withdrawn after a 48-hour cooldown period.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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