Orange Points

Orange Points is a rewards mechanism designed to incentivize OrangeLayer participants through a dynamic and equitable staking rewards system. By leveraging a non-linear decay formula, OrangeLayer aims to reward early stakers generously while ensuring long-term contributors are also rewarded appropriately. This document outlines the parameters and examples illustrating the potential rewards across various staking profiles.

Reward Calculation Mechanism

The system utilizes a non-linear decay model to calculate rewards, offering a compelling incentive structure that balances early engagement with sustained participation.

Revised Parameters

  • Staked Amount (S): The quantity of BTC staked by the participant.

  • Staking Duration (TT): The total time the BTC is staked, measured in hours.

  • Base Reward Rate (RR): Set at 100 points per BTC per hour, adjusting the reward potential upwards.

  • Decay Parameter (DD): It remains at 0.00001, controlling the reward rate's decrease over time.

Reward Rate Function

The hourly reward rate function is defined as:

f(S)=ReD.T2\displaystyle\huge f(S) = R * e^{-D . T^2}

Total Rewards Calculation

Total OrangePoints earned over a staking period are determined by integrating the hourly reward rate from the start to the end of the staking period:

TotalPoints=S0TReDT2dT\displaystyle\huge Total Points = S⋅\int_0^T R⋅e ^{−D⋅T ^2} dT

Example Scenarios

The following scenarios demonstrate the total OrangePoints for staking amounts ranging from micro to large investments under the revised reward rate:

  1. 0.0001 BTC for 10 hours: 0.1 points

  2. 0.001 BTC for 100 hours: 9.68 points

  3. 0.01 BTC for 500 hours: 273.15 points

  4. 0.1 BTC for 1000 hours: 2802.47 points

  5. 1 BTC for 2000 hours: 28024.96 points

  6. 10 BTC for 10 hours: 9996.67 points

  7. 50 BTC for 100 hours: 483821.66 points

  8. 100 BTC for 500 hours: 2731459.86 points

  9. 150 BTC for 1000 hours: 4203710.86 points

  10. 200 BTC for 2000 hours: 5604991.22 points

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