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Reward Distribution Logic

Protocol (TCP) uses a transparent, fair reward distribution system where rewards are calculated based on stake and distributed automatically.

Reward Calculation

Basic Formula

User Reward = (User Stake / Total Stake) × Total Rewards

Example Calculation

User Stake: 1,000 TCP
Total Stake: 100,000 TCP
Total Rewards (Annual): 10,000 TCP

User Reward = (1,000 / 100,000) × 10,000 = 100 TCP

Distribution Mechanism

Continuous Accrual

Rewards accrue continuously:

  • Calculated per block
  • Updated on each interaction
  • Claimable anytime
  • No lock-up period

Automatic Distribution

Rewards are distributed automatically:

  • User claims rewards
  • Rewards transferred
  • Claim recorded on-chain
  • Event emitted

Fair Distribution

Distribution is fair because:

  • Same rate for all users
  • Proportional to stake
  • No favoritism
  • Transparent calculation

Reward Timing

Accrual Timeline

Day 0: Stake 1,000 TCP
Day 1: Rewards accrue
Day 2: More rewards accrue
...
Day 365: Annual rewards accumulated

Claim Timeline

Day 0: Stake tokens
Day 1: Can claim (if rewards accrued)
Day 2: Can claim
...
Anytime: Can claim accumulated rewards

Unstake Timeline

Day 0: Stake tokens
Day 1: Can unstake anytime
Day 2: Can unstake anytime
...
Anytime: Can unstake without lock-up

Reward Scenarios

Scenario 1: Simple Staking

Stake: 1,000 TCP
Reward Rate: 10% APY
Duration: 1 year

Calculation:
Annual Reward = 1,000 × 10% = 100 TCP
Daily Reward = 100 / 365 = 0.274 TCP
Monthly Reward = 100 / 12 = 8.33 TCP

After 1 year:
Total Earned: 100 TCP
Total Balance: 1,100 TCP

Scenario 2: Increasing Stake

Day 0: Stake 1,000 TCP
Day 180: Stake additional 500 TCP
Reward Rate: 10% APY

Calculation:
Days 0-180: Reward on 1,000 TCP = 50 TCP
Days 180-365: Reward on 1,500 TCP = 75 TCP
Total Annual: 125 TCP

After 1 year:
Total Earned: 125 TCP
Total Staked: 1,500 TCP
Total Balance: 1,625 TCP

Scenario 3: Decreasing Stake

Day 0: Stake 1,000 TCP
Day 180: Unstake 500 TCP
Reward Rate: 10% APY

Calculation:
Days 0-180: Reward on 1,000 TCP = 50 TCP
Days 180-365: Reward on 500 TCP = 25 TCP
Total Annual: 75 TCP

After 1 year:
Total Earned: 75 TCP
Total Staked: 500 TCP
Unstaked: 500 TCP
Total Balance: 1,075 TCP

Distribution Transparency

Public Information

All distribution information is public:

✅ Reward Rate — Current reward rate
✅ Total Staked — Total tokens staked
✅ Your Stake — Your staked amount
✅ Your Rewards — Your earned rewards
✅ Distribution History — Past distributions

Verification Methods

You can verify distribution information:

  1. Staking Contract

    • Check reward rate
    • View total staked
    • Check your stake
    • View your rewards

  2. PolygonScan

    • View staking events
    • Monitor stake changes
    • Track reward distributions
    • Verify transactions

  3. Community Tools

    • Use staking dashboards
    • Monitor reward rates
    • Track staking metrics
    • Analyze patterns

Distribution Fairness

Fair Principles

Distribution is fair because:

  1. Same Rate — All users get same reward rate
  2. Proportional — Rewards proportional to stake
  3. Transparent — Calculation visible on-chain
  4. Automatic — No manual intervention
  5. Verifiable — Anyone can verify calculation

Fairness Verification

You can verify fairness:

  1. Check Rate — Verify all users get same rate
  2. Check Calculation — Verify proportional calculation
  3. Check History — Verify consistent application
  4. Check Events — Verify all distributions logged
  5. Check Balances — Verify correct amounts

Distribution Best Practices

For Stakers

✅ Understand calculation — Know how rewards calculated
✅ Monitor rewards — Track your rewards
✅ Claim regularly — Claim rewards periodically
✅ Verify calculation — Verify your rewards
✅ Report discrepancies — Report any issues

For Community

✅ Monitor distribution — Watch distribution patterns
✅ Verify fairness — Verify fair distribution
✅ Assess sustainability — Evaluate long-term viability
✅ Provide feedback — Share suggestions
✅ Report issues — Report any problems

Key Takeaways

  1. Fair calculation — Proportional to stake
  2. Transparent — Calculation visible on-chain
  3. Automatic — No manual intervention
  4. Continuous — Rewards accrue continuously
  5. Verifiable — Anyone can verify calculation

Next: Learn about User Flows and typical staking workflows.

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