Cosmic Network Staking Guide

Welcome to the Cosmic Network staking program! This guide will help you understand how staking works on our platform, how you can earn rewards, and what to expect if you decide to unstake early.

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Introduction to Cosmic Staking

Staking your $COSMIC tokens on the Cosmic Network allows you to earn rewards by locking up your tokens for a chosen period. The longer you stake, the more rewards you accumulate. Our staking program is designed to reward participants fairly, with additional bonuses for larger stakes.

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Annual Percentage Yield (APY)

How is APY Calculated?

• APY Increases with Lockup Days: Your APY is directly proportional to the number of days you lock up your tokens.

• Maximum APY: You can earn up to 120% APY when you stake for the maximum period of 365 days.

• APY Formula:

  $$\text{APY (\%)} = \left( \frac{\text{Lockup Days}}{365} \right) \times 120$$

APY Examples

• Staking for 30 Days:

  $$\text{APY} = \left( \frac{30}{365} \right) \times 120 = \textbf{9.86\%}$$
• Staking for 180 Days:

  $$\text{APY} = \left( \frac{180}{365} \right) \times 120 = \textbf{59.18\%}$$
• Staking for 365 Days:

  $$\text{APY} = \left( \frac{365}{365} \right) \times 120 = \textbf{120\%}$$

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Bonuses for Larger Stakes

We offer additional rewards for staking larger amounts of $COSMIC tokens relative to the total supply.

Bonus Tiers

1. Tier 1 Bonus:

   • Threshold: Stake at least 0.1% of the total token supply.

   • Bonus Boost: 10% extra rewards.

2. Tier 2 Bonus:

   • Threshold: Stake at least 0.5% of the total token supply.

   • Bonus Boost: 20% extra rewards.

Note: The bonus is applied as an increase to your staked amount when calculating rewards.

Bonus Examples

• Total Token Supply: 100,000,000 $COSMIC tokens.

• To Qualify for Tier 1: Stake at least 100,000 $COSMIC tokens.

• To Qualify for Tier 2: Stake at least 500,000 $COSMIC tokens.

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Early Unstaking Penalties

If you choose to unstake your tokens before your lockup period ends, a penalty will be applied to your staked amount.

Penalty Calculation

• Maximum Penalty: 75% of your staked amount if you unstake immediately after staking.

• Penalty Decreases Over Time: The penalty reduces linearly each day as you approach the end of your lockup period.

• No Penalty After Lockup Ends: Once your lockup period is over, you can unstake without any penalties.

Penalty Formula

$$\text{Penalty (\%)} = \left( 1 - \frac{\text{Days Staked}}{\text{Lockup Days}} \right) \times 75$$

Penalty Examples

• Staking for 100 Days and Unstaking on Day 25:

  $$\text{Penalty} = \left( 1 - \frac{25}{100} \right) \times 75 = \textbf{56.25\%}$$
• Staking for 200 Days and Unstaking on Day 150:

  $$\text{Penalty} = \left( 1 - \frac{150}{200} \right) \times 75 = \textbf{18.75\%}$$
• After Lockup Period:

  $$\text{Penalty} = 0\%$$

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Earning and Claiming Rewards

How Rewards are Calculated

• Daily Rewards: Rewards are calculated daily based on your staked amount, APY, and any applicable bonuses.

• Simple Interest: Rewards are calculated on your initial staked amount (no compounding).

Reward Formula

The daily reward is calculated as:

$$\text{Daily Reward} = (\text{Staked Amount} + \text{Bonus Amount}) \times \left( \frac{\text{APY (\%)}}{36500} \right)$$

Note: The APY (%) is divided by 100 to convert it to decimal form, and then divided by 365 to get the daily rate.

Example Calculation

Suppose you stake 100,000 $COSMIC for 180 days, qualifying for Tier 1 Bonus (10% extra), and the APY is calculated as 59.18%.

1. Calculate Bonus Amount:

   $$\text{Bonus Amount} = \text{Staked Amount} \times \text{Bonus Percentage}$$

   $$\text{Bonus Amount} = 1,000 \times 10\% = 100 \text{COSMIC}$$
2. Total Amount with Bonus:

   $$\text{Total Amount} = \text{Staked Amount} + \text{Bonus Amount} = 1,000 + 100 = 1,100 \text{COSMIC}$$
3. Calculate Daily Reward:

   $$\text{Daily Reward} = 1,100 \times \left( \frac{59.18\%}{36500} \right)$$

   $$\text{Daily Reward} = 1,100 \times \frac{0.5918}{36500} \approx 1,100 \times 0.00001622 \approx 1.784 \text{COSMIC per day}$$

Claiming Rewards

• Anytime Access: You can claim your earned rewards at any time without affecting your ongoing stake.

• Unclaimed Rewards: When you unstake, any unclaimed rewards will be automatically paid out to you.

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Multiple Stakes

• Separate Instances: Each stake you create is treated as a separate instance with its own amount and lockup period.

• Flexibility: You can have multiple stakes with different amounts and durations to suit your financial plans.

• Management: Monitor and manage each stake individually through your staking dashboard.

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Getting Started

Step-by-Step Guide

1. Choose Your Lockup Period: Decide how many days (up to 365) you want to stake your $COSMIC tokens.

2. Stake Your Tokens: Use the staking interface on the Cosmic Network platform to lock up your tokens.

3. Monitor Your Rewards: Watch your rewards accumulate daily.

4. Claim Rewards or Unstake:

   • Claim Rewards: Withdraw your earned rewards at any time.

   • Unstake Tokens: After your lockup period ends, unstake without penalties.

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Important Notes

• Minimum Stake Amount: There is no minimum stake amount, but larger stakes may qualify for bonus boosts.

• Maximum Lockup Period: The maximum period for staking is 365 days.

• Multiple Stakes: You can create multiple stakes, each with its own lockup period and amount.

• Financial Planning: Choose a lockup period that aligns with your financial goals to avoid early unstaking penalties.

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FAQs

Q: What happens if I forget to unstake after my lockup period ends?

A: Your tokens will remain staked, and you will continue to earn rewards. You can unstake at any time after your lockup period without any penalties.

Q: Can I add more tokens to an existing stake?

A: No, each stake is treated individually. To stake more tokens, create a new stake with its own lockup period.

Q: Is there a maximum amount I can stake?

A: There is no maximum stake amount. However, staking larger amounts may qualify you for bonus tiers, increasing your rewards.

Q: How often are rewards calculated and can I see them?

A: Rewards are calculated daily, and you can view your accumulated rewards in the staking dashboard on the Cosmic Network platform.

Q: Are my staked tokens locked forever if I don't unstake?

A: No, your tokens are never locked forever. You can unstake them at any time after your lockup period ends without penalties.

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Thank you for being a part of the Cosmic Network community. Happy staking!