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 Tokens can be withdrawn after a 48-hour cooldown period.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

Month	Total Staked	Staking Score
1	1200	100
2	1200	200
3	1200	300
4	1200	400
5	1200	500
6	1200	600
7	1200	700
8	1200	800
9	1200	900
10	1200	1000
11	1200	1100
12	1200	1200

6-Month Lockup Staking Score Accrual

Month	Format	Deposit Amount	Lockup Time	Staking Score	Event
1	Lockup	1000	6	500	Instant gain of staking score
2	Lockup	1000	6	500
3	Lockup	1000	6	500
4	Lockup	1000	6	500
5	Lockup	1000	6	500
6	Lockup	1000	6	500	Conversion to standard staking
7	Standard staking	1000	-	583.3
8	Standard staking	1000	-	666.7
9	Standard staking	1000	-	750
10	Standard staking	1000	-	833.3
11	Standard staking	1000	-	916.7
12	Standard staking	1000	-	1000

12-Month Lockup Staking Score Accrual

Month	Format	Deposit Amount	Lockup Time	Staking Score	Event
1	Lockup	1000	12	1000	Instant gain of staking score
2	Lockup	1000	12	1000
3	Lockup	1000	12	1000
4	Lockup	1000	12	1000
5	Lockup	1000	12	1000
6	Lockup	1000	12	1000
7	Lockup	1000	12	1000
8	Lockup	1000	12	1000
9	Lockup	1000	12	1000
10	Lockup	1000	12	1000
11	Lockup	1000	12	1000
12	Lockup	1000	12	1000

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

Lvl	Required staking score	Product fees discount	Access to Enterprise Account	SPN Rewards Multiplier	Node Sale Discount	Node Earning Cap (Annual ROI)	Commission fee	Discount for referred node license buyers
5	1,000,000	25.00%	Yes	1.5	25.00%	No limit	10%	5%
4	750,000	20.00%	No	1.4	20.00%	500.00%	8%	4%
3	500,000	15.00%	No	1.3	15.00%	300.00%	6%	3%
2	250,000	10.00%	No	1.2	10.00%	200.00%	4%	2%
1	100,000	5.00%	No	1.1	5.00%	150.00%	2%	1%

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