Staking

Staking offers holders of CLNK tokens passive rewards, without needing to sell them. Think of staking as rewarding you for holding on to your tokens and demonstrating that to the project itself.

Staking is a reward distribution tool of CLNK. Stakers stake their CLNK tokens on the CLNK validator nodes earning rebase rewards every 2200 Ethereum blocks (8 hours).

Staked CLNK is called sCLNK and is always redeemable at a 1:1 ratio to CLNK, once you unstake you will always receive 1 CLNK for every 1 sCLNK and vice versa via staking or unstaking.

The Annual Reward Rates presented by CLNK indicate the reward that will be unlocked at the next rebase, this is calculated based on the number of stakers and existing supply.

Because these calculations are based on variable factors the current rates are not a guarantee of future rewards.

Reward yield is determined by the following equation:

The ARR is calculated from the reward yield (a.k.a rebase rate) using the following equation:

The reward yield is multiplied by 1095 because rebases occur 3 times daily (every 8 hours). So 365 days in a year, multiplied by 3 = 1095.

The number of CLNK distributed to the staking contract is calculated from CLNK total supply using the following equation:

For example, if you have 1000 sCLNK staked and the current Annual Reward Rate is 7%, then your yield would be 70 CLNK.

The amount of rewards earned by stakers depends on their stake in the network and the total amount of CLNK tokens staked. As the total amount of CLNK staked increases, stakers’ rewards decrease. The more CLNK tokens you stake, the higher your rewards will be.