Staking Rewards

Monthly distribution, calculation formula, and APY calculation for future rewards, many more details broken down below.

Staking Rewards

Staking reward distribution happens on a monthly basis. Rewards are distributed at the end of each month.

It is a four-step cycle:

1. Stake ZEN, in Month 1, you stake ZEN and obtain sZEN. Reward accumulation starts from Month 2.

2. Reward distribution for Month 2 occurs at the end of the Month 2.

   • Total staking reward available for distribution in Month 2 is based on Zenit Platform fee income that was collected and the daily distribution rate of the ZEN staking incentives for Month 2.

   • User’s share of staking rewards for Month 2 is calculated based on their sZEN balance at the start of Month 2 relative to the total sZEN supply at the start of Month 2.

3. Rewards for Month 2 can be claimed by users from Month 3 onwards. Users can also stake their ZEN rewards and increase their sZEN balance and future rewards.

4. Step 2 and 3 repeat every month till expiry:

   • Reward distribution for Month X occurs at the end of the Month X

   • Rewards for Month X can be claimed by users from Month X+1 onwards.

Calculation of Staking Rewards

$$Monthly\: Reward \:Distributed\:,\: R = Staking \:Incentive \:Rewards + Zenit\: Ecosystem \:Fee$$

$$Staking\:Incentive\:Rewards = Daily\:Incentive\:Rewards*30$$

$$Zenit\:Ecosystem\:Fee =\frac{ Total\:Monthly\:Zenit\:Fee\: * 0.25}{ZEN.price}$$

The above formula is an assumption, actual ZEN rewards from Zenit Platform Fee would differ based on the token price in the open market.

$$Monthly\:Reward\:Earned\:by\:a\:user =\frac { sZEN.user }{ sZEN.tot } * R$$

$$sZEN.user = User’s\:sZEN\:balance\:at\:the\:start\:of\:the\:month$$

$$sZEN.tot = Total\:sZEN\:balance\:of\:the\:protocol\:at\:the\:start\:of\:the\:month$$

$$R = Total\:ZEN\:Rewards\:for\:the\:month$$

$$Staking\:APR = (Monthly\:Reward\:Earned\: by\:a\:user / ZEN\:staked\:by\:user)*12*100$$

$$Staking\:APY = ((1+(Monthly\: Reward\:Earned\:by\:a\:user /ZEN\:staked\:by\:user))^{12} - 1) *100$$

Calculation of APY assumes that the monthly rewards are re-staked in the protocol.