Introduction

In this guide, you will find detailed information on how to stake tokens in the Work X Genesis NFT platform. We will explain how staking tokens can affect your level and shares in the system. Additionally, we will outline the different types of reward programs that will be active and provide instructions on how to calculate your expected rewards.

Staking

The staking process of Work X Genesis NFT is unique compared to traditional methods. Instead of staking tokens directly in a contract, or the NFT into a contract, the tokens are instead staked into the NFT itself, where it will act as a “piggy bank”.

By placing your tokens inside the NFT, you will participate in the staking process and earn rewards based on your level and shares and amount of tokens staked. This innovative approach provides an engaging system where participants are rewarded for their contribution, increasing the stability of the ecosystem. The staked tokens inside it, the eligibility for rewards as well as access to premium platform features give the Work X Genesis NFT an intrinsic value that will create interesting trading opportunities.

The NFT, including its staked tokens and built up rewards, can be traded to another person at any time. Transferring all value lock inside as well as any access it grants to premium features on the Work X platform.

You can stake $WORK tokens into the NFT by visiting https://stake.workx.io and connect with the wallet that holds your NFT.

Then proceed to the Stake button and specify the amount of tokens you wish to stake by dragging the slider. Please note that it is not possible to stake an unlimited amount of tokens. There is a daily allowance which increases on a daily basis by 294 tokens, that means if you wait 10 days and come back you are able to stake 2940 tokens in one go.

When you drag the slider you can see the level and/or tier in the “Hud” component at the top increase if you hit a new level/tier. While the level and tier numbers in the table at the middle keep showing your current values, not including the tokens you are about to stake.

Under the slider there is also an “Auto Evolve” switch, this can be turned on to automatically increase your tier if you might hit it with the added tokens. Please keep in mind that while doing so increases your level beyond the current tier cap, you also need to reach the next tier cap before you will be able to unstake tokens without destroying the NFT.

Level and Shares by staked $WORK

The following table reflects the level and shares you get by amount of $WORK staked in the NFT.

The table does not include level-caps, so it basically assumes you always “auto-evolve” to the next tier when staking.

When you do not turn on auto-evolve but surpass the max level within the current tier, the tier will cap your level using the following formula:

maxLevel = (tier * 10) + 10

This means that if you are for example Tier 3 your max level would be:

3 * 10 + 10 = 40

So at level 40 you can either be Tier 3 (level 10) or Tier 4 (level 0) depending on if you have evolved or not.

Unstaking

Consider the above example of being level 40 and Tier 3, when unstaking the following rule applies:

When the initial lock period of unvested tokens is over, all tokens in surplus of the max level within the current tier can be unstaked without destroying the NFT.

For example for a NFT of Level 32 the Tier would be 3, the max level within it would be 40, and the tokens to reach that would be 38228. Since you are not max level you can not unstake any tokens without destroying the NFT.

However if you would have 100k tokens staked in that NFT but have not evolved above Tier 3, this means your level would remain at Level 40 which is the max level in that tier, and you could unstake the following amount:

100000 - 38228 = 61772

You can always, if your NFT unlock-period has concluded, get all your tokens out by destroying the NFT.

If you do not wish to destroy your NFT, but you do want to harvest rewards, it could be a strategic choice to get max level within a tier that you feel comfortable with, so that you can unstake any rewards your NFT might get without destroying it.

Unlock Period

If you added tokens during the NFT mint, which was an option for seed and private sale participants, there is an unlock period in play.

The unlock period stops the NFT from being able to be destroyed, and blocks unstaking during that time.

The unlock period is calculated based on the vesting of the rounds you participated in. It takes a weighted average of the unlock periods of each of the rounds that apply. If that was only a single round it takes the unlock period of that round.

On top of that there is a maximum of 33% “discount” on the unlock period to compensate for the linear nature of the vesting being turned into an unlock. In order to get the full 33% discount you need to stake 100% of the participation. If you have staked half of your participation in the NFT, you get half of the discount (33% / 2 = 16.5%) The discount will be applied on top of the weighted average.

discountPercentage = 33 / stakingPercentage

For example if a person participated in the seed round with 1000 tokens and in the private round with 500 tokens that would mean a weighted average would be (2 * 18 + 1 * 12) / 3 = 16 months, as the months from the seed round weigh twice as much as those from the private round.

Lets assume this person staked 50% of the 1500 tokens into the NFT: 750 tokens. This would give a discount of 16.5% on top of the 16 months. The result would be an unlock period of 13.36 months.

Rewards

From the beginning (reveal-date: 18 Jan 2024) there will be 3 reward programs.

• A Shares based program, this program also rewards empty NFTs. You can look at the table above to find out how many shares your NFT has based on the amount of tokens staked inside it. Its purpose is to give an intrinsic value to each Work X Genesis NFT.
• A Level based program, this program rewards people that level-up their NFT, it does not reward empty NFTs, but is capped at level 80. Its purpose is to reward people that level their NFT.
• A Tokens based program, staked tokens inside the NFT are proportionally rewarded. Here the NFT is used like a traditional staking mechanism, but with an added advantage: The NFT and its staked tokens as well as accumulated rewards are tradable as a package. There is no cap to the amount of tokens that can be staked in one NFT.
  Its purpose is to act as a version 2.0 of traditional staking mechanisms.

Shares Reward

The Shares Reward program is designed to reward all Work X Genesis NFT’s and give even more intrinsic value to them, including “empty” NFTs.

To determine the number of shares your NFT has, you can refer to the table provided above. The table shows the amount of shares based on the tokens staked inside the NFT. By staking tokens inside your NFT, you increase the number of shares it holds, which in turn increases your potential rewards from this program.

The Shares Reward program aims to create a fair distribution of rewards and motivate people to hold on to their NFT. It encourages users to actively participate in the Work X ecosystem.

The total rewards distributed on a monthly basis for 40 months long, based on the following formula:

This results in a total of 693261 tokens over a period of 40 months. After 40 months the reward program will conclude.

The following graph depicts how much tokens will be rewarded each month:

The rewards can be claimed into your NFT at any time, and for each month the system will determine how much shares you had during that month, and factor it with the total shares during that month, and give your NFT its part of the monthly rewards.

If you do not claim for 5 months and then claim, the system will calculate your rewards for each month, add them together and transfer them into the NFT. This might level-up your NFT automatically, increasing your further rewards. However it would not increase your Tier automatic, if you surpass a Tier threshold and wish to evolve it, you should go to the staking website and do so manually.

Level Reward

The Level Reward program in the Work X Genesis NFT platform is designed to reward users based on their level progression. The program incentivises users to level up their NFTs by offering more rewards for reaching higher levels. However, it’s important to note that the Level Reward program is capped at level 80.

The level reward program does not have a fixed amount of tokens that is shared with all users every month, however it does have a fixed total amount that will rewarded, and if that total amount has been rewarded the Level reward program will automatically conclude. It is unknown when this will be, as we do not know how many people will level-up their NFT’s by how much.

The program rewards you for each level that your NFT has on a monthly basis. The NFT will earn 8 $WORK tokens per level per month. While this does not seem much, it can quickly amount to rather significant APY’s especially if combined with the other reward programs.

If you have for example a level 10 NFT. Non-evolved at Tier 0, so you can unstake all rewards into your wallet, a typical farm setup that could be suitable for non-whale participants. That would mean that your NFT would earn 10 * 8 * 12 tokens on a yearly basis, which equals 960 tokens.

If you consider that in order to reach level 10 you only need to stake 5580 tokens, that would mean that the level reward program alone will yield you 960 / 5580 * 100 = 17.2% APY. On top of this your NFT will also earn Shares and Token rewards.

Token Reward

The Token Reward program in the Work X Genesis NFT platform is designed to provide proportional rewards to users based on the amount of tokens they stake inside their NFTs. Unlike the other reward programs mentioned earlier, the Token Reward program functions similarly to a traditional staking mechanism.

By staking tokens inside your NFT, your NFT will become eligible to receive rewards proportionate to the number of tokens you have staked. These rewards can be earned in addition to the rewards of other programs.

One notable advantage of the Token Reward program over traditional staking methods is that the NFT and its staked tokens, along with the accumulated rewards, can be traded as a package. This provides flexibility and potential trading opportunities for participants.

This program caters more towards whales as it is not capped, you can stake as much tokens as you want inside an NFT.

The total amount of tokens that will be rewarded for a given month is calculated using the following formula.

This will result in a total of 1386522 $WORK tokens being rewarded over 40 months, distributed in the following way:

The rewards can be claimed into your NFT at any time. Each month the system will determine how many tokens you had staked during that month, and factor it with the total staked tokens during that month, and give your NFT its part of the monthly rewards.

If you for example are inactive for 10 months and then come back and claim, the system will calculate the rewards for each month, add them together and transfer them into the NFT. This might level-up your NFT automatically, increasing your further rewards. However it would not increase your Tier automatically, if you surpass a Tier threshold and wish to evolve it, you should go to the staking website and do so manually.

APY Calculations

Since there are 3 reward systems from the start, and we might add other programs later, it is not easy to calculate the APY, but in this chapter we are going to explain how it is done anyway, so brace yourself it might get rather technical.

Empty NFT’s

If you own an empty NFT without any tokens staked inside then the calculation is easy, or impossible. Actually both. Because there are no tokens staked inside the NFT the APY is infinite.

Yes you read that right, infinite. If such a thing exists, otherwise take the sum of all molecules in the universe and multiply it by the largest number you can think of.

Staked NFT’s

If you do have tokens staked in the NFT the calculation becomes:
A) possible
B) much harder
But lets have a go at it anyway.

What we are going to need to do is calculate the sum of the rewards from all 3 reward programs over a year, and then factor that with the amount of tokens staked, the outcome of this will be your NFT’s APY.

Assumptions

Since the Shares and Staked tokens depend also on how many other people have, and this variable is unknown in advance we have to assume some numbers there in order to make a calculation. For the Level reward it is more straightforward, as that solely depends on your own level but we have to assume the tokens do not run out before the year ends, which is highly unlikely in the first years.

Shares Reward Calculation

To calculate the reward from shares an NFT can get, we have to assume the total amount of tokens staked for a whole year, in real world scenarios this value fluctuates from month to month and can not be predicted in advance. The total yearly shares reward, however, we can calculate exactly for a given year as this follows an exact formula. For the first year for example this is 396152, which is the value we will use in the examples below.

Yearly shares reward formula:

Level Reward Calculation

The yearly level-reward calculation is rather straightforward, it takes the level of the NFT and multiplies it by 8 for each month. Please note that your NFT level might increase during the yearly period, but for the sake of simplicity we will assume it will stay the same.

Yearly level reward formula:

Token Reward Calculation

To calculate the reward from tokens an NFT can get, we have to assume the total amount of tokens staked for a whole year, which in real world scenarios fluctuates from month to month and can not be predicted in advance. The total yearly token reward, however, we can calculate exactly for a given year as this follows an exact formula. For the first year for example this is 792304, which is the value we will use in the examples below.

Yearly token reward formula:

Summing it all up

Now we add together the rewards from all 3 programs, to get to the total yearly rewards for the NFT:

When we know the total yearly reward, we can now finally do the last calculation for the actual APY of the NFT:

Or if we put everything together, excluding the range calculations to get the yearly shares and token rewards, the formula looks like this:

Examples

We have to assume some values in order to make real calculations, these values might differ from the reality, however we tried to choose values that were as realistic as possible.

The assumed values are:

Yearly total token reward (first year): 792304 (fixed)
Yearly total shares reward (first year): 396152 (fixed)
Reward per level per month: 8 (fixed)
Total staked: 7000000 (assumption)
Total Shares: 43364 (assumption)

We will calculate the following scenarios NFT examples:

• Empty NFT
• Max Level NFT
• Tier 0 Level 10 NFT
• Mid-level NFT

Empty NFT

Shares reward: 51 / 43364 * 396152 = 465
Level reward: 12 * 8 * 0 = 0
Token reward: 0 / 7000000 * 792304 = 0
Total reward: 465 + 0 + 0 = 465
APY: ∞

Max Level NFT

Shares reward: 370 / 43364 * 396152 = 3380
Level reward: 12 * 8 * 80 = 7680
Token reward: 152720 / 7000000 * 792304 = 17285
Total reward: 3380 + 7680 + 17285 = 28345
APY: 28345 / 152720 * 100 = 18.56%

Tier 0 Level 10 NFT

Shares reward: 63 / 43364 * 396152 = 575
Level reward: 12 * 8 * 10 = 960
Token reward: 5580 / 7000000 * 792304 = 631
Total reward: 575 + 960 + 631 = 2166
APY: 2166 / 5580 * 100 = 38.81%

Mid Level NFT (36)

Shares reward: 124 / 43364 * 396152 = 1132
Level reward: 12 * 8 * 36 = 3456
Token reward: 35036 / 7000000 * 792304 = 3965
Total reward: 1132 + 3456 + 3965 = 8553
APY: 8553 / 35036 * 100 = 24.41%