> For the complete documentation index, see [llms.txt](https://tno.gitbook.io/tnocoin-and-not-punks-ecosystem/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tno.gitbook.io/tnocoin-and-not-punks-ecosystem/utility-for-not-punks-and-not-punks-girls-nfts/detailed-tno-staking-structure-for-nft-not-punks-and-not-punks-girls.md).

# 🔍 Detailed TNO Staking Structure for NFT NOT Punks and NOT Punks Girls

## 🔍 General Principles

Staking NFT NOT Punks is designed to provide players with additional income and stimulate long-term participation. The system encourages both new and experienced players to actively interact with the game and each other.

<figure><img src="https://1802980550-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFq6U7Ru1WnEPKCcrmad2%2Fuploads%2FiKFUDkWTw5sTW91ZMvkG%2Fphoto_5262917362921889566_y.jpg?alt=media&amp;token=50cc882e-9538-42be-91f9-92089e631648" alt=""><figcaption><p>Structure of interaction between validators and delegators</p></figcaption></figure>

### 1. 🛡️ Role of Validators and Delegators

**🛡️ Validators (Sentinels)**

* **Validator Role**: A validator can be either a single NFT (NOT Punks or NOT Punks Girls) or a pair (male + female). A complete validator is considered to be a pair.
* **NFT Holders as Validators**: Holders of NFT NOT Punks and NOT Punks Girls perform the functions of validators.
* **Receiving delegated tokens:** Validators receive tokens delegated to them by users and participate in steaking mechanisms to receive rewards.
* **Keeping the Steaking Pool Running:** Validators manage the steaking pool, ensuring that awards are correctly calculated and distributed to delegates.
* [**Validator Rating**](/tnocoin-and-not-punks-ecosystem/utility-for-not-punks-and-not-punks-girls-nfts/validator-rating-calculation.md):
  * Each validator has its own rating, which depends on:
    * 📈 Number of NFTs.
    * 👩‍❤️‍👨 Number of pairs (male + female).
    * 🔢 Number of NFTs with matching serial numbers.
    * 🌟 Number of rare NFTs.
  * Rating influences award distribution and delegate confidence. Rarity is taken into account more in calculating validator rating than in determining yield.
* **Limit on Delegated Tokens**:
  * The limit on delegated tokens for each validator is determined based on the total supply of tokens in circulation and the validator's rating.
  * Formula for calculating the limit:
    * **Total Delegation Limit** = 50% of the total supply of tokens in circulation.
    * **Limit for each validator** = Total Delegation Limit × (Validator Rating / Total Rating of all Validators).
    * The maximum limit for a single validator cannot exceed 5% of the total delegation limit.
    * Example: If the total delegation limit is 50,000,000 TNO, the total rating of all validators is 10,000, and a validator has a rating of 29 points, the limit of delegated tokens will be:

      ```
      Delegated Token Limit = 50,000,000 TNO × (29 / 10,000) = 145,000 TNO
      ```

      * However, if this exceeds 5% of the total delegation limit (2,500,000 TNO), the limit will be capped at 2,500,000 TNO.

**🤝 Delegators**

* **Role of Delegators**: Ordinary users can delegate their tokens to validators for staking.
* **Rewards for Delegators**: Delegators receive a portion of the rewards earned by the validators.

### 2. 💎 Base Rewards for Staking

* **Single NFT (Male or Female)**: 2.5% annual return on the value of delegated tokens.
* **Complete Validator (Male + Female)**: 5% annual return on the value of delegated tokens.

### 3. ⏳ Increase in Rewards for Duration of Staking

* **Duration-Based Rewards**: Rewards increase by 2.5% every 7 days of continuous staking, up to a maximum of 25% of the base staking rate.
  * Reward Increase Calculation:
    * Day 0-7: 0%
    * Day 8-14: 2.5%
    * Day 15-21: 5%
    * Day 22-28: 7.5%
    * And so on, up to a maximum of 25%.

### 4. 🌟 Bonus for Rarity

* **Rarity Coefficient**: Add a bonus to rewards based on the rarity of the NFT. Rarity increases the base rewards by a maximum of 2%.
  * Automatic Calculation of Rewards Considering Rarity:
    * Example: A NOT Punk with a rarity of 100/3260: Coefficient = 1.02 (1 + (3260 - 100) / 3260 \* 0.02).
    * If the base reward is 100 TNO, then considering the rarity coefficient, it will be 102 TNO.

### 5. 🎁 Additional Incentives and Bonuses

* **Serial Number Match Bonus**: Additional increase in rewards by 5% for staking a pair of NFTs with matching serial numbers.

### 6. 🚫 Penalties and Restrictions

* **Early Withdrawal Penalty**: When withdrawing NFTs from staking early, a penalty of 5% of the accumulated rewards is charged, encouraging long-term holding.

### 7. 📅 Regular Reviews and Adaptations

* **Planned Review of Conditions**: Staking conditions and rewards are reviewed every 3 months to adapt to changes in the game economy and ensure staking remains attractive and fair.
* **Adapting Conditions**: Periodic assessment and potential adjustment of staking conditions to maintain balance and interest in the gaming community.

### 8. 🕵️‍♂️ Transparency and Regulation

* **Monitoring and Audit**: Regular audits of the staking system to ensure fairness and transparency in reward distribution.
* **Transparent Rules**: Establishing clear and transparent staking rules accessible to every participant.

***

## 💰 Sources of Staking Rewards

* **Ecosystem Fund**: 10 million tokens will be allocated for staking rewards.
* **Marketing Budget**: 2.5 million tokens from the marketing budget will be directed towards staking rewards.
* **Revenue Distribution**: 5% of each token purchase/sale will be directed to the staking reward fund.

## 🔄 Distribution of Rewards Between Sentinels and Delegators

* **Sentinels**:
  * Receive 30% of the total reward fund, distributed proportionally to the number of delegated tokens and their rating.
* **Delegators**:
  * Receive 70% of the total reward fund, distributed proportionally to their shares in delegating to Sentinels.
