Staking

The $MGNT Staking Program is a simple yet efficient system designed to reward token holders who commit their tokens for short-term locking periods. This mechanism ensures consistent yield, predictable rewards, and stability for both stakers and the overall ecosystem.

1. Overview

• Annual Percentage Yield (APY): 10%
• Available Lock Periods: 1 Week, 2 Weeks, 1 Month
• Penalty for Unforced Unstaking: 1,000 $MGNT per account
• Reward Model: Linear, time-based proportional distribution

This fixed-yield model ensures that all users, regardless of staking duration, earn rewards relative to the time their tokens remain locked.

2. APY and Duration

In this system, the APY remains constant at 10% annually across all durations. The actual reward depends on the number of days staked, calculated proportionally.

Lock Duration	Approx. Days	APY	Effective Reward (of Annual)
1 Week	7 days	10%	≈ 0.192%
2 Weeks	14 days	10%	≈ 0.384%
1 Month	30 days	10%	≈ 0.822%

Example: A user staking 10,000 $MGNT for 1 month will receive approximately 82.2$MGNT as reward.

3. Reward Calculation Formula

The reward for staking is calculated automatically by the smart contract using the following formula: reward = (staked_amount * APY * duration) / (10000 * YEAR)

The reward formula in the staking contract is defined as:

$$R = \frac{A \times (APY_{bps}) \times D}{10000 \times Y}$$

Where:

• $R$ = Reward amount in $MGNT
• $A$ = Amount of tokens staked
• $APY_{bps}$ = Annual yield in basis points (bps)
• $D$ = Duration of staking (in seconds)
• $Y$ = Total seconds in a year (31,536,000 seconds)

Since 10000 bps = 100%, for 10% APY $\rightarrow$ $APY_{bps}$ = 1000.

Where:

• staked_amount = number of $MGNT tokens locked
• APY = annual yield in basis points (1000 bps = 10%)
• duration = staking time in seconds
• YEAR = 31,536,000 seconds (365 days)

This formula ensures that rewards are distributed fairly and proportionally to the actual staking time.

4. Example Calculations

Let's assume a user stakes 10,000 $MGNT.

(a) For 1 Week (7 days)

$$R = \frac{10,000 \times 1000 \times 604,800}{10000 \times 31,536,000}$$ $$R \approx 19.18 \, MGNT$$

(b) For 2 Weeks (14 days)

$$R = \frac{10,000 \times 1000 \times 1,209,600}{10000 \times 31,536,000}$$ $$R \approx 38.36 \, MGNT$$

(c) For 1 Month (30 days)

$$R = \frac{10,000 \times 1000 \times 2,592,000}{10000 \times 31,536,000}$$ $$R \approx 82.19 \, MGNT$$

Thus, the reward distribution is proportional to the staking duration, while maintaining a fixed 10% annual yield.

5. Early Unstaking Penalty

To maintain fairness and discourage early withdrawals, the system enforces a flat penalty of 1,000 $MGNT per account for any unforced unstaking (unstake before the chosen lock duration ends).

This mechanism:

• Prevents short-term speculation,
• Encourages steady staking behavior, and
• Protects the long-term stability of the staking pool.

6. Key Highlights

• Fixed 10% APY: Predictable and stable annual return for all users.
• Flexible Periods: Choose from 1 week, 2 weeks, or 1 month.
• Proportional Rewards: Earnings are calculated linearly based on staking time.
• Penalty System: 1,000 $MGNT fee applied for premature unstaking.
• Auto Accumulation: Rewards continue to accumulate without reset until unstaked.

7. Summary Table

Duration	APY	Approx. Reward	Penalty (if early unstake)
1 Week	10%	≈ 0.192%	1,000 $MGNT
2 Weeks	10%	≈ 0.384%	1,000 $MGNT
1 Month	10%	≈ 0.822%	1,000 $MGNT

8. Conclusion

The fixed 10% APY staking model of $MGNT offers a balanced system for both casual and long-term holders. By combining short-term flexibility with a transparent, time-based reward structure, it empowers users to earn passive income without risk of inflationary reward cycles.

The 1,000 $MGNT penalty for early unstaking ensures consistency and fairness - strengthening both the staking pool and the broader token economy.