Summary of staking DHT
Staking dHEDGE Token (DHT) enables certain benefits, including receiving voting power to participate in dHEDGE governance and being eligible to receive capital rewarded on a weekly and quarterly basis.
To participate, enter an amount of DHT to stake as well as a lockup period. The lock-up period can range from 1 month to 3 years. The longer you lock up, the higher your governance and earnings power. Governance influence and earnings power are measured by vDHT.
- vDHT is based on staked DHT * lock-up time
- vDHT decays linearly over time
- For example, a user locking-up DHT for 10 months instead of 1 month will have 10 times as many vDHT
- User can increase amount of DHT locked at any time as well as increase the lock-up time
This is a visual representation of the governance and earnings power as a function of time locked:
vDHT declines linearly as lockup time goes to zero. Your governance and earnings power is calculated as vDHT/(Total vDHT).
Staking rewards (earnings power) are based on vDHT. APY shown in the staking modal is the APY from your starting vDHT balance. As your vDHT balance declines, so will your staking rewards, and your true APY.
Longer lockup periods will have a higher initial APY, as vDHT will be higher, and staking rewards and APY will decline slower on longer lockup periods.
Additionally, APY is calculated assuming a full year, so it extrapolates to the full year. If your staking length is set to under a year, expect a return lower than the stated APY.