This article is designed to give you a more in-depth understanding of the LYNC network.
- Transfer fee
All transactions of the LYNC token incur a 1% fee on the receiving end, this fee is sent directly to the Reward Pool, this has been implemented so that it can provide a steady flow of tokens to the Reward Pool.
- Reward Pool and token flow
One of the three core elements to the LYNC network is the Reward Pool. All transaction fees and staking penalties are sent directly to this pool. Expansion of the LYNC network through future development and collaborations will be solely designed to create more token / income flow to this Reward Pool.
Initially there will be two staking contracts, the first will be available on the 28th of September 2020 to coincide with the first round of the ITO allowing token holders to begin earning rewards immediately. The second is planned for later this year and is intended to replace the original.
150,000 LYNC are allocated specifically for the Reward Pool, these tokens will be added to the Reward Pool in waves. We aim to make sure that the balance and stake rewards are healthy while we build on the LYNC network and add more revenue streams to the Reward Pool.
- Staking contract V1
On the 28th of September 2020 upon release of the first round of the ITO the first staking contract (hereinafter referred to as V1) will be available for token holders to start staking LYNC immediately. This can be accessed via the Investor Dashboard:
This is a basic staking model, there will be a minimum requirement of 100 LYNC tokens to participate.
When un-staking tokens there is flat fee of 5% this is sent directly to the Reward Pool. This will create an additional source of tokens for the Reward Pool. Rewards will be calculated according to the following formula:
- Staking contract V2
The second staking contract (hereinafter referred to as V2) will be introduced in December of 2020 and is intended to replace V1. Investors will be required manually un-stake from V1 and stake in V2, this will not be an automated process. Again, once deployed this will be available on the Investor Dashboard:
There will be four staking durations available for V2, each of these comes with an end-of-stake penalty fee percentage equivalent to the number of days staked:
- 7 Days 7% Penalty Fee
- 14 Days 14% Penalty Fee
- 28 Days 28% Penalty Fee
- 60 Days 60% Penalty Fee
It is important to understand these are the MINIMUM required days you must stake without being affected by the end-of-stake penalty fee. For each day that is staked of the term, the penalty fee is reduced by 1% so at the end of the staking term, no fee is due, for example, if a stake is placed for 28 days and is terminated 18 days into the 28 day term, the remaining 10 days will be converted into a 10% termination fee. The termination fee will be sent directly to the Reward Pool.
Each of the stake durations will be accompanied by a percentage split of the Reward Pool during reward distribution:
- 7 Days: 4% split
- 14 Days 10% split
- 28 Days 26% split
- 60 Days 60% split
As the number of investors per pool will vary, so will the estimated percentage of the reward for that specific pool, this data will be clearly outlined on the Investor dashboard. Rewards will be calculated according to the following formula:
- Liquidity staking
With the introduction of the V2 contract we intend to implement additional rewards for investors who supply liquidity on UNISWAP. More information on this will be documented when available.
- Future projects and the ecosystem
The V1 and V2 contracts of the LYNC network are just the beginning of what we hope to grow into a thriving ecosystem. We are already looking to prototype ideas on the Rinkeby test network that will be designed purely to increase the tokens available in the Reward Pool.
This may be in the form of incoming Ethereum which will be used to purchase more tokens from the market, raising the value of the token, these tokens will also be sent directly to the Reward Pool. There are also plans for additional dAPPS that will be powered by the LYNC token itself which would directly flow into the Reward Pool.
We have some very exciting ideas that are being discussed in the forms of gamification to NFT’s and we look forward to sharing these with you in the coming months if we think they will benefit the LYNC network.