CNET Staking

CyberNetwork is committed to maintaining a robust, secure, and highly efficient blockchain ecosystem. A pivotal aspect of achieving this goal lies in our unique staking mechanism, designed to incentivively reward validators & delegators for their crucial role in network operations. Through staking CNET tokens, validators contribute to the network's security, validate transactions, and help sustain the blockchain's overall success and sustainability. Below, we outline the core components of the CNET Staking program, emphasizing the reward system and the dynamics of validator contributions.

Reward Distribution Mechanism

At the heart of the CNET Staking program is a daily reward distribution system designed to fairly compensate validators & delegators for their participation and efforts in maintaining network integrity. Every day, a pool of 166,765 CNET tokens is distributed among all validator nodes, with the distribution proportional to the amount of CNET each validator has staked in the network. This ensures that rewards are aligned with the level of contribution and commitment validators demonstrate towards network security and efficiency.

Annual Percentage Rate (APR) Calculation

The APR for validators & delegators participating in the CNET Staking program is dynamically calculated based on the total amount of CNET staked across the network and the daily rewards distribution. Unlike traditional staking models that offer a fixed base APR, the CyberNetwork's APR evolves in response to the network's staking dynamics, reflecting the true value of contribution by each validator. This approach ensures a fair and equitable reward system, encouraging active and sustained participation from validators.

To calculate the APR, we consider the total annual rewards, derived from multiplying the daily distribution of 166,765 CNET by 365 days. This total is then divided by the overall amount of CNET staked in the network, with the quotient multiplied by 100 to derive the APR percentage.

Example: Calculation of the APR

With the new total staking amount of 200,000,000 CNET, we can calculate the adjusted APR using the same reward distribution mechanism of 166,765 CNET distributed daily among validator nodes.

• Total Annual Rewards remains at 166,765 CNET * 365 = 60,869,568 CNET.

• Adjusted APR for a total staked amount of 200,000,000 CNET is calculated as follows:

$Adjusted APR=(60,869,568 / 200,000,000)∗100$

Let's proceed with the calculation of the adjusted APR.

In this adjusted scenario, with a total of 200,000,000 CNET staked across the network, the APR would be approximately 30.4%.

This example demonstrates an APR of approximately 30.4%, highlighting the potential for significant rewards for validators who actively participate and stake CNET in the network. It's important to note that the actual APR experienced by validators will vary with the total staked CNET, underscoring the dynamic nature of the CyberNetwork's reward system.

Conclusion

CyberNetwork's staking program is designed to foster a secure, efficient, and thriving ecosystem by directly linking validators' rewards to their contributions. Through our daily rewards distribution and dynamic APR calculation, we aim to incentivize and recognize the vital role that validators play in the success and sustainability of the network. As the CyberNetwork grows and evolves, we remain committed to ensuring that our staking mechanism remains transparent, fair, and beneficial for all participants.