Giving rewards is the best way to interact with the members and create incentives for all users of DDK community platform. It contributes to the longevity, security, and productivity and brings the community members to participate in building the interest towards DDK platform. Through giving rewards, the community participates in the empowerment of the platform and continues the proceedings efficiently and effectively.
How does reward mechanism work on DDK platform? Well, this topic requires details so, in the following post, we will help you understand staking rewards only.
Let’s explore it!
These rewards are for those community members who have staked their DDKoins in a staking contract. Against this contract, stakeholders will get reward 10% from staked amount every after 4th votes until complete the 24th votes of the first year and after that, it will decrease 2% after every 6 months until it reaches 2% staking rewards. The only condition with this reward is stakeholders need to vote four times. At the time of voting, the stakeholder may vote max of 101 Delegates per account lifetime. The fees imposed is 0.01% from the amount of staked DDKoin of maximum 3 delegates per transaction. Stakeholder who votes more than 3 delegates on the following transaction (maximum of 3 delegates per transaction) will be imposed additional voting fees based on 0.01% from the amount of staked DDKoin. The fee is fixed against this voting and 0.01% of amount staked DDKoins. If a stakeholder performs this task, he/she will get rewarded in the form of DDKoins.
We can explain it with an example. If you have put 50 DDKoins in staking contract, you will get 5 DDKoins every after 4th vote for a year. After a year, the percentage of staking rewards will decline by 2% after every 6 months and you will get 8% and so on until it reaches 2% staking rewards. But, you must ensure that you are obligating the condition of voting four times a month.
Some other aspects are also important in staking rewards and we need to describe them as well. This reward mechanism is expected to last long up to 10 years because there is a possibility that the user is not continuously staking since they could possibly withdraw or exchange to other coins as well. For staking rewards, it was unmined and the distribution will be based on voting activity by stakeholders until all reach 41 million total DDKoins supply for staking.
This is all there is to about the staking rewards in DDK. We will keep you updated if there are any changes. Thank you.