How Staking Works
A brief overview of how the MAXX ecosystem staking works.
When users create a stake, the transaction deposits their liquid MAXX tokens into a contract, where they are locked until the duration. They are then assigned a number of shares based on the principal amount, duration, and any other bonuses used.
These shares are mainly used to calculate your stake's guaranteed Interest rate, but may also have future benefits such as weighed voting in the MAXX Vault and other aspects of the ecosystem.
Once a user's stake is matured it can be withdrawn from the contract, and the principal + interest will be deposited back into the user's wallet. The Shares are then burned, as they do not convert directly into MAXX tokens.
A slowly decreasing ShareFactor (SF) is used to encourage people to stake early. Early stakers will receive a higher amount of shares, therefore slightly higher APY.
All of this process is completely decentralized at no point does anyone have access to the tokens and staking & unstaking must be done by the person who has access to the wallet.
Let's say you buy 1,000,000 MAXX tokens at a hypothetical price of $0.0001 for a total of $100.
If you stake it for a 1 year period, in the first few days of the launch, you will get a fixed 24.26% APY rate, earning you 242,637 MAXX over the duration. If the price is exactly $0.0001 after a year, your holdings are now worth $124.26 If the price has climbed to $0.01 after a year, your holdings are now worth $12,426.37
If you stake it for a 2 year period, you will get a fixed 30.27% APY rate, earning you 605,359 MAXX over the duration. If the price is exactly $0.0001 upon withdrawal, your holdings are now worth $160.63 If the price has climbed to $0.01 upon withdrawal, your holdings are now worth $16,063.59
If you stake for the maximum of 3333 days (9.1 years), you will get a fixed 73.09% APY rate, earning you an impressive 7,673,967 MAXX over the duration. Your total holdings are now 8,673,967 MAXX. If the price is exactly $0.0001 upon withdrawal, your holdings are now worth $867.39 If the price has climbed to $0.01 upon withdrawal, your holdings are now worth $86,739.67
Whilst we cannot guarantee or speculate on the future value of the MAXX token, we can guarantee the payouts in MAXX that you will be earning. Other similar projects have done a 10,000x in price from launch, so the 100x in the above examples is a very mild example.