MOBYStakingV1.docx
Times New Roman
16
Introducing $MOBY Staking V1
Publish: (UTC) 12:00 AM - 16 Feb 2024
●Author: Moby Team
INTRODUCTION:
As part of our ongoing efforts to innovate and offer value to our community, we are thrilled to announce the upcoming launch of a new feature of Moby: staking.
Designed to redefine user engagement and reward distribution, this feature is a testament to our commitment to fostering a transparent, inclusive, and economically sound ecosystem.
THE IMPORTANCE OF STAKING IN MOBY:
The purpose of staking in the Moby protocol is to encourage diverse stakeholders to participate in a healthy and transparent governance process as well as incentives alignment. Through staking, participants provide a varied and balanced voice representing the Moby community, directly influencing the crucial decision-making process required for the execution of ICO structures. This approach offers an economically safe staking structure when considering the revenue generated within the Moby platform, promoting the healthy development of the protocol by fairly distributing incentives to participants.
UNDERSTANDING THE MOBY STAKING PROGRAM:
At the heart of Moby's staking model lies a tiered system, tailored to accommodate participants at various levels of engagement. This model is underpinned by an economic structure that balances supply and demand dynamics, ensuring fair distribution of rewards. The incorporation of an exponential weighting model for reward allocation further distinguishes Moby's approach, incentivizing higher deposits for greater rewards, thereby bolstering platform funds and participant benefits.
1. Tiered System:
After receiving feedback and contributions from our community, angel investors, and advisors, we decided to make some adjustments to the tier by switching the value to $MOBY, instead of $ETH.
Another adjustment that Moby has added is the Incubator which opens up more opportunities for $MOBY holders to participate in our governance and incentive programs.
The tiers:
| Tiers | Required $MOBY |
|---|---|
| Incubator | 1 < Incubator ≤ 4,800 |
| Mobie | 4,800 < Mobie ≤ 9,600 |
| Citizen | 9,600 < Citizen ≤ 19,200 |
| Mayor | 19,200 < Mayor ≤ 38,400 |
| Senator | 38,400 < Senator ≤ 57,600 |
| Governor | 57,600 < Governor ≤ 144,000 |
| President | 144,000 < President |
*The standard of each tier can be changed.
2. Stake to earn Moby’s platform incentives:
Moby is committed to returning power to $MOBY stakers by enabling stakers to be rewarded with 50% of our platform fees for participating in the voting process of new projects and contributing to their long-term success, across the tiers described above.
MOBY’S TIERS WEIGHT AND FEES DISTRIBUTION
To allocate 50% of our platform's fees among the tiers with different significance, we will initiate the calculation process by first identifying the overall weight, using the specific weights assigned to each tier.
Considering the specified weights, we will compute the aggregate weight, ascertain each tier's share based on its weight, and utilize these shares to allocate 50% of the platform's fees. Initiating with a recalculation of the overall weight, we will then assess the distribution sums for each tier, presuming 50% of the total fee collected is designated for distribution among the tiers. This method outlines the steps for apportioning 50% of the platform fees among the tiers, based on the given weights, and presents the outcomes of these calculations (see table below).
| Tiers | Tier Weight | Fee Distribution |
|---|---|---|
| Incubator | 0.5 | 2.94% |
| Mobie | 1 | 5.88% |
| Citizen | 1.5 | 8.82% |
| Mayor | 2 | 11.76% |
| Senator | 3 | 17.65% |
| Governor | 4 | 23.53% |
| President | 5 | 29.41% |
APPLYING THE EXPONENTIAL WEIGHTING MODEL FOR FAIRER REWARD DISTRIBUTION
Additionally, the Moby Staking function applies the Exponential Weighting Model for Reward Distribution to ensure that platform rewards are distributed fairly based on the amount of $MOBY staked. The idea is to reward users more generously for larger deposits, encouraging an increase in the platform's overall funds. The formula increases the reward weight as deposit amounts rise, motivating users to contribute more. The exponential function is used only for determining weights within tiers. As mentioned above, there are fixed unique weights between tiers.
The formula used for calculating the weights is as follows:
Staking Weight = a * (Deposit Amount)b
Where a and b are constants, and b determines the rate of increase in weight with respect to the deposit amount. In this example, we use a=1 and b=1.2.
For example:
Assuming the following deposit amounts within the 'Mobie' tier:
- 4900$MOBY, 5000$MOBY, 5100$MOBY, 5200$MOBY, 6600$MOBY, 7218$MOBY, 8500$MOBY
Assuming that the total reward allocated to the 'Moby' tier is 10,000$USDC, the reward for each user would be distributed as follows:
- Calculate Total Weight: Sum the weights of all users.
- Calculate Individual Rewards: Determine the proportion of each user's weight relative to the total weight and distribute the total reward based on this proportion.
The calculated rewards distributed to each user are as follows:
| $MOBY Staked | Staking Weight | Individual Rewards |
|---|---|---|
| 4900 $MOBY | 26,806.20 | 1,098.22 $USDC |
| 5000 $MOBY | 27,464.01 | 1,125.17 $USDC |
| 5100 $MOBY | 28,124.46 | 1,152.22 $USDC |
| 5200 $MOBY | 28,787.50 | 1,179.39 $USDC |
| 6600 $MOBY | 38,322.40 | 1,570.02 $USDC |
| 7218 $MOBY | 42,667.80 | 1,748.05 $USDC |
| 8500 $MOBY | 51,916.18 | 2,126.94 $USDC |
*This may contain a slight variance as it is an approximation.
CONCLUSION:
The tier system and the exponential weighting model for reward distribution forms the cornerstone of Moby's staking function. This approach not only incentivizes users to contribute to the platform but also ensures a fair and proportional distribution of rewards.
Importantly, while this model establishes a solid foundation for the staking function in Moby, it is designed with flexibility in mind. The governance voting mechanism allows for future adjustments, ensuring that the staking function can evolve with the platform's needs and the community's preferences.
The MOBY staking program will be live on Friday (16 Feb), at 2PM UTC!
Make ICOs Great Again.