Staking mechanism

As described on the staking overview page, BNRX holders can lock their tokens to receive part of the platform's income.

This works as follows:

• A user picks a lock period (counted in quarters) and locks his BNRX tokens on the platform for that period.

• Once the tokens are locked, for the duration of the lock they are assigned a weight. The longer the lock is, the bigger the weight. More specifically, if the user locks his tokens for $t$ quarters, then the weight of these tokens is calculated as

$$w(t) := {\sf min}\bigg(3, 3 \times \bigg( \frac{t}{16} \bigg)^{0.7}\bigg)$$

• Staking rewards are distributed proportionally to weighted tokens.

Example: suppose that there are only 5 tokens locked in the system, and they are locked by users A, B, and C respectively. The staking rewards distribution is then calculated as follows

User	A	B	C
Number of tokens	2	2	1
Lock period	4 quarters	10 quarters	16 quarters
Weight of locked tokens	1.137	2.159	3
Weighted tokens	2.274	4.318	3
Share of staking rewards	23.7%	45%	31.3%

At any moment users can also prolong their tokens or forcefully unlock them:

• At any moment a user can prolong his lock. If $s$ quarters remain in users’ current lock and he chooses to prolong his lock for $t$ more quarters, then during these $t$ additional quarters the weight of his tokens will be given by $w(s+t)$.

• At any moment a user can forcefully unlock his tokens. Upon doing so, he will receive $(70- 4.66p)\%$ of the tokens he locked, where $p$ is the percentage of users who've forcefully unlocked their tokens during this quarter. The rest of the tokens are paid as a fee to the Binaryx DAO, and are afterwards distributed among other BNRX token holders.