# 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. *** ### 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.** *** ## 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. *** {% stepper %} {% step %} ### 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 ``` {% endstep %} {% step %} ### Step 2: Calculate Total Weighted Stake Let: * `T` = total DBT tokens staked * `W` = weighted stake after applying lock multipliers
Lock DurationMultiplier
6 Months1.5x
12 Months2.2x
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 ``` {% endstep %} {% step %} ### Step 3: Daily Reward Per Weight Unit ``` RewardPerWeight = StakePool_t / WeightedStake ``` {% endstep %} {% step %} ### 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 ``` {% endstep %} {% step %} ### Step 5: Convert to Annualized APY Approximate APY: ``` APY ≈ (DailyReward / StakedAmount) * 365 ``` {% endstep %} {% endstepper %} *** ## 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% ``` *** ## 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 *** ## 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://gitbook.dabba.network/staking.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.