Aleph.im Staking Go-Live (part 2): Stakers Tokenomics
Aleph.im tokenomics for the stakers are finally here! These tokenomics were engineered according to the last update on the incentive program tokenomics back in July 2020 and many iterations.
👉 Articles of the series: 1/ Core Channel Nodes and Node Operators, 2/ Stakers Tokenomics, 3/ Network Final Phase Explained, 4/ Network Launch Dates
👉 FAQ for Stakers and Node Operators
About Aleph.im
Aleph.im’s core mission is to help decentralized apps and protocols to strip off the centralized parts of their stack, achieving a completely decentralized stack. It does this by providing decentralized databases (including file storage), computation and a DID framework. You can think of Aleph.im as a decentralized AWS or firebase.
Vocabulary note: we use both the terms ”takers” and “delegators” to mean anyone who stakes/delegates their tokens on a node.
Why Stake?
By choosing to stake/delegate on a specific node you help it to become (or remain) a core channel node, granting it all the economical benefits. By choosing what node is worth staying online, you help secure the network.
When staking/delegating, you start receiving rewards from day one. Each staker is rewarded according to his/her amount of staked ALEPH tokens versus the total amount staked by all stakers.
And as we will see later, staking can also contribute to the increase of the daily staking reward pool.
How To Stake?
All you need when staking is your wallet and a web browser. Everything will happen through our Staking DApp hosted on our official website. Easy!
We will support several web wallets (including Metamask) and for hardware wallet you will be able to stake using your Ledger via Metamask.
As mentioned in our staking update article of July 2020, during this first phase of the core channel nodes deployment, stakes will be materialized via aleph.im messages signed by Ethereum addresses holding ERC-20 ALEPH tokens.
Meaning that you will be able to stake without any tokens leaving your wallet, this entirely removes the risk of losing funds when staking.
Daily Staking Reward Pool
The value of the daily staking reward pool evolves according to 1/ the number of core channel nodes running and 2/ time since launch.
These are charts and figures for the daily reward pool allocated to stakers, with several example months to demonstrate the central idea behind the tokenomics design: incentivized to stake on nodes trying to become core channel nodes while keeping the existing core channel nodes in the network. This way we reach the maximum amount of nodes possible according to the total number of staked tokens.
Reminder from our previous article on Core Channel Nodes: For a node to become a core channel node, it must hold a total delegated amount of minimum 700K ALEPH tokens, of which 200K must be from the node operator deposit (which isn’t counted as staking).
Nitty Gritty: Daily Staking Rewards Pool Calculation
The daily reward pool for stakers is capped to 15K ALEPH tokens.
The formula to calculate the staking rewards
Result = % Distributed According to Core Nodes * Distribution Base Number
With: % Distributed According to Core Nodes = (log10(NbOfNodes)+1)/3
In plain english: curve starts steep at first and then flattens.
And: Distribution Base Number = 15000–150*(NbOfMonthsSinceLaunch)
In plain english: starts at 15000 per months and decreases of 150 each month.
The distribution base number decreases every month so that the overall amount of tokens rewarded is guaranteed to decrease, guaranteeing a longer period with tokens available in the incentive pool.
Calculation Example:
If we have 35 nodes on the network and on the 4th month after launch, it will look like this:
Daily Staking Rewards Pool = (log10(35)+1)/3 * (15000–150*4) = 12211
What’s Next?
Keep an eye on our Twitter and Medium blog for further updates in the coming days and weeks!
Thank you to all of you who have followed us and supported us. The following weeks will mark the start of a new epic chapter in the project lifetime.
👇 Check out our articles below👇
Articles Of The Series
- Core Channel Nodes and Node Operators (Dec 8, 2020)
- Stakers Tokenomics (Dec 11, 2020)
- Final Phase Explained (Dec 14, 2020)
- Launch Dates (Dec 15, 2020)
Related Articles
- Tokenomics update 2: supply halving & staking updates (Jul 23, 2020)
- Update on Tokenomics & Incentives Programs! (Jul 6, 2020)
