Explanation of Staking Rewards, Quarters and Shares
Feb 21, 2022 3:19 PM
Many of you are probably confused by the Normal / Max APR and the staking system in general. You want to know how many rewards you can really get? I'll try to explain it to you.
The Normal APR currently sits at 794% and will definitely be lower in the next few days, since more funds will flow in. For this reason and for an easier understanding, I will show you examples with an APR of 400% and I will always use 1000 BBS tokens in these examples.
If the Normal APR is 400% then the return per quarter is 100% because a year consists of 4 quarters. I'll explain later what the Maximum APR is.
So if you choose to lock the 1000 BBS tokens for 1 quarter, you will double your investment (100%) after this time period. The outcome would be 1000 BBS tokens plus the initial 1000 BBS tokens.
If you want to lock your BBS tokens for multiple quarters, you can boost the APR. The more quarters, the higher the APR. The maximum amount of quarters to lock your tokens is currently 13, so more than 3 years.
In this example you choose to lock 1000 BBS tokens for 4 quarters. You will get a 25% boost on the APR for each quarter, which you added. In this case you would get 1.75x for the first quarter (1750 BBS), 1.5x for the second quarter (1500 BBS), 1.25x for the third quarter (1250 BBS) and finally 1x for the fourth quarter (1000 BBS). The outcome after 4 quarters would be 5500 BBS plus the initial 1000 BBS. The APR with the boost would be 550% compared to 400% without the boost.
So for each quarter you can increase the boost by 0.25x to a maximum of 4x. That 4x would be for the first of 13 quarters if you lock your tokens for 13 quarters. So the Max APR would be 1600%.
Let's do an example with the maximum amount of quarters. The outcome after 13 quarters would be 32500 BBS plus the initial 1000 BBS. So the APR with this maximum boost would be at an average of 1000% APR
Now I want to break it down to the Quarters:
Lock for 1 quarter and the return per quarter will be 100%.
Lock for 4 quarters and the average return per quarter will be 137.5%.
Lock for 13 quarters and the average return per quarter will be 250%.
Keep in mind that these examples were made with a stable APR of 400%. In the real world the APR is constantly changing and it can also drop way lower than that.
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