# Staking

KMNO Staking rewards long-term users of the protocol.

By staking your KMNO, you can boost your points earnings. Over time, your staking multiplier will increase, enabling you to boost your points up to 300%.

Staking goes live upon the KMNO launch, April 30th at 12PM UTC

## Staking Overview

To stake your KMNO, you can go the KMNO staking page, and click "stake". For every $1 of KMNO staked, you earn 3x points per day.

In addition, staking will instantly earn you the Base Staking Boost of 30%. Over time, your Staking Multiplier will increase as you remain staked, thus increasing your Total Staking Boost over time.

#### Key Values:

Base Staking Boost: 30% - Default boost earned by staking

Daily Multiplier: 0.5% - Rate by which staking boost increases per day as you remain staked

Staking Multiplier: Total multiplier you have accumulated by remaining staked over time

Total Staking Boost: Total staking boost you receive, consisting of base and multiplier

Max Boost: The maximum total boost you can accrue is 300%

See here for examples of how these boosts work in practice.

## How Staking Boost Works

For every 1 KMNO staked, your Staking Boost applies to 2 of your points per day. The more points per day you earn, and the more KMNO you have staked over time, the higher your boosted points.

The formula for boosted points is as follows:

`kmno_staked * 2 * total_staking_boost`

For example, if you have 1000 KMNO staked, your staking boost will apply to a maximum of 2000 of your points per day.

With a 50% staking boost, you can earn a maximum of:

`1000 * 2 * 50% = 1000 max additional points`

The amount of points that can be boosted is capped to your points per day. Eg. in the above scenario, if a user was only earning 500 points per day, the 50% staking boost would only apply to those 500 points.

In this case, the user would earn:

`500 * 50% = 250 additional points`

Note that the staking boost only applies to points per day earned by having active positions in Kamino. It does not apply to your points earned from staking KMNO.

## Staking Multiplier

KMNO staking is aimed at rewarding long-term users. Every day a user remains staked, their staking multiplier will increase by 0.5%. If a user keeps the same amount staked for a year, their Staking Multiplier will be at 182.5%.

The maximum staking multiplier is 270% - which can be achieved by keeping the same amount staked for exactly 540 days. Additional deposits will increase the duration needed to achieve maximum boost - as explained below:

### Staking Multiplier Decrease

Staking Multiplier will decrease when a user stakes more KMNO

**For example:**

User has 1000 KMNO staked

Staking Multiplier = 50%

User stakes an additional 2000 KMNO

New stake balance = 3000 KMNO

Their new Staking Multiplier can be calculated as:

`current_staking_multiplier * (1 - additional_stake / new_stake_balance)`

`50% * (1 - 2000/3000) = 17%`

Thus, Staking Multiplier decreases proportionally to the additional amount of KMNO staked.

## Staking Scenario Examples

### Scenario 1: Basic Staking Example

User A earns 1,000,000 points per day (from protocol positions + loyalty boost)

User A stakes their 200,000 KMNO

KMNO Price = $0.2

The moment User A stakes their KMNO, they earn the 30% Base Staking Boost.

This boost applies to a maximum 200,000 * 2 = 400,000 points per day (ppd)

Thus, max Staking Points Boost: 400,000 * 30% = 120,000 ppd

In addition, User A also earns 3x points per day for every USD of KMNO staked

200,000 * 0.2 * 3 = 120,000 ppd

**Total Points Per Day**

Thus, the moment User A stakes their 200,000 KMNO, they earn a total 240,000 ppd - and a total 1,240,000 ppd

### Scenario 2: Continuous Staking For 90 Days

User A earns 1,000,000 points per day (from protocol positions + loyalty boost)

User A has kept his 200,000 KMNO staked for 90 days

KMNO price is now at $0.25

User A has staked for 90 days, with the Daily Multiplier of 0.5%, User A now has a Staking Multiplier of 45%.

Combined with the 30% Base Staking Boost, User A is now earning a Total Staking Boost of 30 + 45 = 75%

This boost applies to a maximum 200,000 * 2 = 400,000 points per day (ppd)

Thus, max Staking Points Boost: 400,000 * 75% = 300,000 ppd

In addition, User A earns 3x points per USD of KMNO Staked: 200,000 * 0.25 * 3 = 150,000 ppd

**Total Points Per Day**

Thus, after remaining staked for 90 days, User A earns a total 450,000 additional ppd - and a total 1,450,000 ppd

### Scenario 3: Staking Additional KMNO

User A decides he wants to maximize his staking boost, so he buys more KMNO from the market and wants to stake it

User A earns 1,000,000 ppd (from protocol positions + loyalty boost)

User A has kept his 200,000 KMNO staked for 90 days

Because of staking, User A has accrued Staking Multiplier of 45%

KMNO price is now at $0.25

User A buys another 100,000 KMNO and stakes it

Based on Scenario #2 above, User A is currently earning 1,450,000 ppd

**Additional Stake**

With the additional stake, their Staking Multiplier will decrease as follows:

`current_staking_multiplier * (1 - additional_stake / new_stake_balance)`

So: 0.45 * (1 - 100,000 / 300,000) = 0.3 = 30%

Due to the additional stake, the Staking Multiplier decreased from 45% -> 30%

As result, total staking boost is now 30% + 30% = 60%

**Additional Stake Impact**

The total KMNO staked is now 300,000, thus the staking boost applies to a maximum 600,000 points per day: 600,000 * 0.6 = 360,000 ppd

In addition, User A earn 3x points per USD of KMNO staked = 300,000 * 0.25 * 0.3 = 225,000 ppd

**Total Points Per Day**

Thus, after remaining staked for 90 days, then staking an additional 100,000 KMNO, User A earns a total 825,000 additional ppd - and a total 1,825,000 ppd

### Scenario 4: Staking for Maximum Boost

User A now remains staked for another 540 days, and is now earning the maximum boost of 300%

User A earns 1,000,000 ppd (from protocol positions + loyalty boost)

User A has kept his 300,000 KMNO staked for 540 days

Because of staking, User A has accrued the max multiplier of 270%

KMNO price is at $0.25

This boost applies to a maximum 300,000 * 2 = 600,000 ppd

Thus, max Staking Points Boost: 600,000 * 300% = 1,800,000 ppd

In addition, User A earns 3x points per USD of KMNO Staked: 300,000 * 0.25 * 3 = 225,000 ppd

**Total Points Per Day**

Thus, after achieving the maximum boost, User A earns a total 2,025,000 additional ppd - and a total 3,025,000 ppd

### Scenario 5: Withdrawing & Staking More Than Points Earning

User A has 300,000 KMNO staked, now decides to withdraw 200,000 KMNO

User A earns 1,000,000 ppd (from protocol positions + loyalty boost)

User A now has 100,000 KMNO stake remaining

KMNO price is at $0.25

Unstaking does not impact Staking Multiplier, so User A still has a Total Staking Boost of 300%

This boost applies to a maximum 100,000 * 2 = 200,000 ppd

Thus, max Staking Points Boost: 200,000 * 300% = 600,000 ppd

In addition, User A earns 3x points per USD of KMNO Staked: 100,000 * 0.25 * 3 = 75,000 ppd

**Total Points Per Day**

Thus, after unstaking 200,000 KMNO, User A earns a total 675,000 additional ppd - and a total 1,675,000 ppd

### Scenario 6: More KMNO Staked vs Points Per Day

What happens when a user has more KMNO staked than they are earning points per day?

User A withdraws funds. They used to earn 1,000,000 points per day, now they are earning 100,000

User A now earns 100,000 ppd (from protocol positions + loyalty boost)

User A has 100,000 KMNO stake

User A has the maximum staking boost of 300%

KMNO price is at $0.25

The staking boost applies to a maximum 100,000 * 2 = 200,000 points per day (ppd)

Thus, max Staking Points Boost: 200,000 * 300% = 600,000 ppd

**However - User A is only earning 100,000 ppd**

As a result, the staking boost only applies to the 100,000 points per day that User A is earning.

Thus: User A Staking Points Boost: 100,000 * 300% = 300,000 ppd

In essence, you can only boost the points that you are earning. If your amount of KMNO staked allows you to boost 200,000 points, but you are only earning 100,000 points, then only that 100,000 points will be boosted.

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