Notice 07 | Mining Ratios and Staking
This notice addresses Mining Ratios and LTT staking.
(1) The current mining ratio of 17:1 will increase to 21:1 on 1 September 2021. Members already on 13:1 and 17:1 are grandfathered at that rate.
(2) LTT staking will be enabled shortly. This is a process where members stake their LTT in a pool to receive a percentage of earnings from fees charged for X by SL auctions (earnings are payable in USDC platform credits to use on Loot NFT). LTT is converted immediately to a share of the pool.
LTT is used to transport (and record) and record transactions on the blockchain for future X by SL auction events. For those staking by 5 September 2021, they will get a 25% early adopter bump to their share of the pool. This will account for their LTT staked grossed up by 25% (decimal places are rounded down); for e.g., if you stake 100 LTT, it will be deemed as if you had staked 125 LTT in calculating your share of the pool. Thereafter, the bonus will be at 15% until further notice.
More on the technicals of X by SL Staking below.
Fuel
Each LTT staked is converted to Fuel, which is required to transport winning bids in X by SL auctions. Bidding in these auctions are done in blocks of 500 USDC per bid.
Share of Pool
The more a member’s Fuel balance pro-rata that of others, the bigger the share of the pool. For e.g., if only 3 members have staked LTT with balances of 10, 100, and 1,000 LTT each, their share are 0.90090%, 9.00900% and 90.090100% respectively.
Fuel Sales
Fuel is sold for 7% of the total value of a winning bid. For e.g., if an item at X by SL auction receives 10,000 USDC, then Fuel is sold for 700 USDC (7%). Fuel sold is distributed to members based on their share. Using the above example, when a winning bidder pays for an item at an X by SL auction, member 1 receives 6.31 USDC, member 2 receives 63.06 USDC, and member 3 receives 630.63 USDC credits to use on Loot NFT. This is displayed in the “Earned Credits” section of a member’s wallet page on Loot NFT.
Fuel Burn
LTT are burned when consumed and equal, at a minimum, the number of bidding blocks transported. Continuing on the same example, a minimum of 20 LTT is required to transport 10,000 USDC since each bidding block is 500 USDC (i.e., 10,000/500 = 20). However, LTT is only dealt in whole numbers meaning that the amount of LTT burned per member must be in multiples of 1 LTT based on that member’s share of the pool (fractionals are rounded up, for e.g., for member 1: 0.9009% x 20 LTT = 0.18 LTT, rounded up to 1 LTT). Hence, member 1 burns 1 LTT, member 2 burns 2 LTT and member 3 burns 19 LTT. The average rate per LTT in the e.g. is 31.81 USDC/LTT [ i.e., 700 (Fuel sales)/22 (Total LTT for transport) = 31.81 ].
Warning
Once staked, you cannot un-stake LTT. Your LTT will be available as Fuel immediately for X by SL auctions. These auctions are run by Loot NFT partners.
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