🏦Staking

We’re at ~125k connections live and adding more every day. As the network grows, each hotspot owner's reward gets diluted. To give owners exposure to network growth, we’re introducing a staking mechanism that turns idle unclaimed owner‑share into sustainable staking rewards.

How it works

• Collect idle owner‑share from unclaimed hotspots (the 60% that would normally go to an owner)

• Route 30% as staking incentive (remaining 70% funds community growth).

• Distribute pool rewards pro‑rata to stakers , bigger stake = bigger rewards.

With zero net new emissions, this creates sustainable rewards that flow back to long‑term supporters.

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Staking Reward Flow Diagram

This diagram explains how DBT flows from hotspot emissions into staking rewards.

                      +----------------------+
                      |   Active Hotspots    |
                      +----------+-----------+
                                 |
                                 v
             +----------------------------------------+
             |  DBT emitted per hotspot per day (E_t) |
             +-------------+--------------------------+
                                 |
                     +-----------+------------+
                     |                        |
                     v                        v
    +--------------------------+   +------------------------------+
    |Claimed & Active Hotspots |   | Unclaimed & Active Hotspots  | 
    |                          |   |                              |
    | Rewards distributed      |   | Owner Share (60%)            |
    | as per UBI model         |   | Redirected to Incentive Pool |
    +--------------------------+   +-----------+------------------+
                                                 |
                                                 v
                                     +------------------------+
                                     |    Network Incentive   |
                                     +-----------+------------+
                                                 |
                       +-------------------------+----------------------+
                       |                                                |
                       v                                                v

             +----------------------+                       +---------------------+
             |  Staking Incentives  |                       |  Growth Incentives  |
             |        (30%)         |                       |        (70%)        |
             +-----------+----------+                       +----------+----------+
                         |                                             |
                         v                                             v
            +------------------------+                   +----------------------+
            |   Reward DBT staking   |                   | Hotspot Sales        |
            |     (weight based)     |                   | Marketing            |
            +------------------------+                   | Hackathons           |
                                                         | Network expansion    |
                                                         +----------------------+

Staking rewards are funded by network expansion rather than arbitrary token inflation.

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APY Simulation Model

Because staking rewards depend on both network state and staking demand, APY must be modeled dynamically.

The effective APY can be estimated using the following framework.

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1

Step 1: Calculate Daily Staking Reward Pool

Let:

• U_t = active but unclaimed hotspots

• E_t = DBT emitted per hotspot per day

Owner share parameters:

owner_share (of unclaimed hotspot)= 60%
staking incentive = 30% of owner_share

Daily staking pool:

StakePool_t = U_t * E_t * 0.60 * 0.30

2

Step 2: Calculate Total Weighted Stake

Let:

• T = total DBT tokens staked

• W = weighted stake after applying lock multipliers

Lock Duration	Multiplier
6 Months	1.5x
12 Months	2.2x

Example distribution:

6 Month stake = 40M DBT
12 Month stake = 60M DBT

Weighted stake:

40M * 1.5 = 60M
40M * 2.2 = 88M

Total weighted stake = 148M

3

Step 3: Daily Reward Per Weight Unit

RewardPerWeight = StakePool_t / WeightedStake

4

Step 4: Calculate Individual Rewards

Example user staking:

Amount = 10,000 DBT
Lock Duration = 12 months
Multiplier = 2.2x
User weight+ = 10,000 * 2.2 = 22,000 DBT

Daily reward:

user_daily_reward = weight * RewardPerWeight

5

Step 5: Convert to Annualized APY

Approximate APY:

APY ≈ (DailyReward / StakedAmount) * 365

---

Example Scenario

Assume:

Sold & Active hotspots = 25,000 
Unclaimed & Active hotspots = 100,000

Daily emissions for unclaimed locations:

Daily Mainnet Rewards = 1,643,835 DBT
Daily H.O Rewards = 60% x Daily Mainnet Rewards = 986,301 DBT
Daily H.O Rewards per hotspot = 7.890408 DBT/hotspot
Daily H.O Rewards from Unclaimed Locations = 100,000 x 7.890408 = 789040.8 DBT

Staking Incentives:

Staking Incentive Pool = 30% of Daily H.O Rewards from Unclaimed Locations
                       = 0.3 x 789040.8
                       = 236,712.24 DBT/day 

If total weighted stake: 148M

reward_per_weight = 236,712.24 / 148,000,000
                  = 0.0015994 DBT

Calculating APY for a user:

If user has staked 10,000 DBT at 12 month lock
User weight: 10,000 × 2.2 = 22,000
Daily Reward = 22,000 * 0.0015994 = 35.1868 DBT/day
Annualized = 34.716 x 365 = 12843.182 DBT

Effective APY ~ 128.4%

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Sensitivity Analysis (What Moves APY)

APY increases when:

• more hotspots are deployed but not yet claimed

• fewer DBT tokens are staked

• longer lock durations dominate

APY decreases when:

• more DBT tokens enter staking

• hotspot inventory gets sold to owners

• emission schedule declines

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Growth Phase vs Mature Network

This design naturally produces two phases.

Early Network Phase

• large unclaimed hotspot inventory

• high staking rewards

• strong bootstrap incentives

Mature Network Phase

• most hotspots claimed

• smaller incentive pool

• staking yield decreases

This mirrors the natural growth cycle of infrastructure networks.