💰Staking $HBTS
Overview of Staking and Utility of the HBTS Token
Last updated
Overview of Staking and Utility of the HBTS Token
Last updated
Staking is a process where users lock up their HBTS tokens to earn rewards and participate in the platform’s incentive mechanisms. By staking tokens, users contribute to the stability and security of the Housebets ecosystem and are rewarded in various ways:
Rewards: Users earn staking rewards based on the amount of HBTS they stake. These rewards come from the platform’s token supply and are designed to incentivize long-term participation.
Rebates: The amount of rebates available to active gamblers on the platform is influenced by the total tokens staked. Higher staking levels increase the rebates users can receive from their betting activities.
Burn Mechanism: Staking impacts the token burn rate. More tokens staked result in a lower burn rate, reducing the overall supply and potentially increasing the token’s value.
Liquidity Incentives: Stakers can also earn rewards by providing liquidity in the HBTS-USDT pool, which helps maintain the platform’s liquidity and stability.
Utility Factor and Its Role
The utility factor (υ) is a mathematical adjustment applied to the token issuance rate, ensuring that the incentives align with the platform's usage. It dynamically adjusts based on the proportion of tokens staked and the proportion of tokens in the liquidity pool.
Mathematical Formula: [ \text{υ} = \left(\frac{2LS}{S^2 + L^2}\right)^2 ]
Where:
S: Proportion of circulating supply that is staked.
L: Proportion of circulating supply in the liquidity pool.
This formula ensures that the utility factor increases when both staking and liquidity provision are high, promoting more significant rewards and incentives for users.
NGR Share and Rebates
The Net Gaming Revenue (NGR) share is divided into three components: burn, user rebates, and staked HBTS. These shares are determined through the following equations:
Burn (RB): [ RB = (1 - S) ]
This equation shows that the burn rate is inversely proportional to the amount staked. As staking increases, the burn rate decreases.
User Rebates (RU): [ RU = (1 - RB) \cdot S ] [ RU = (1 - (1 - S)) \cdot S ] [ RU = S^2 ]
User rebates are a function of the staking rate and incentivize users to stake more to increase their potential rebates.
Staked HBTS (RS): [ RS = 1 - RU - RB ]
This equation balances the remaining portion of NGR, ensuring that all parts sum up to 100%.
Inflation Distribution
Inflation in the token supply is allocated among stakers, users, and liquidity providers. The distribution is designed to reward participation proportionally:
Staked HBTS (IS): [ IS = \frac{L^2}{S^2 + L^2} \cdot (1 - S) ]
This formula calculates the share of inflation rewards going to stakers, taking into account the liquidity pool and staking ratios.
User Allocation (IU): [ IU = \frac{L^2}{S^2 + L^2} \cdot S ]
User allocation is similarly calculated but is proportional to the amount staked.
Liquidity Pool (IL): [ IL = 1 - IS - IC ]
This formula ensures that liquidity providers are rewarded after accounting for stakers and users.
Staking: Users lock up HBTS tokens to earn rewards, influence rebates, and reduce the token burn rate. This mechanism incentivizes long-term engagement and platform stability.
Utility Factor (υ): Adjusts the token issuance rate based on staking and liquidity, promoting balanced and fair distribution of rewards.
NGR Share: The net gaming revenue is divided into burn, user rebates, and staked HBTS, ensuring that increased staking benefits the overall ecosystem.
Inflation Distribution: Tokens are distributed to stakers, users, and liquidity providers based on their participation, ensuring a dynamic and responsive token economy.