Comment on page

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