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Token distribution scenario analysis

Effects of Performance Mining Cap and Minimum Staking Reward Ratio

The following table outlines some potential scenarios for the buy-and-redistribute:
Purchased tokens
Performance Mining Cap
Staking Reward Ratio
Staking rewards
Performance Mining rewards
10,000
50,000
20%
2,000
8,000
100,000
50,000
20%
50,000
50,000
1,000,000
50,000
20%
950,000
50,000
It follows that the number of tokens allocated to growing the protocol via performance mining are dependent on STRT token prices and protocol revenue. Greater protocol revenue (or lower prices) result in a greater number of tokens being purchased. Additionally, the redistribution cap ensures that during these times value redistribution favors token stakers, rather than performance miners. This process is analogous to equity buybacks or dividends in traditional markets, which tend to be associated with a company having few avenues for productive investment of excess capital, whereas if potential returns on investment are high, the capital is better spent on driving growth (with the performance mining program analogous to investment).
Last modified 6mo ago
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