Staking is a method of earning passive income by putting your tokens into a vault, which simply holds your tokens and distributes rewards. Transferring put your tokens into the EG staking vault, you pay an entry fee of 5.75% (3% Vault Contribution, 2% Social Impact Fee, 0.75% Admin Fee). Additionally, when you exit the vault, your tokens also incur an exit fee of 5.75%. Everyone who enters and exits the vault pays the entry and exit fees. The vault contribution fees are distributed proportionally to everyone in the vault at the time of entry and exit. Therefore, if you keep your tokens in the staking vault for an extended period of time, you earn more rewards generated from all entry and exit fees. Additionally, since the rewards are distributed proportionally, the more tokens you keep in the vault, the more tokens you earn from fee distributions. Staking rewards investors who keep their tokens in the staking vault for a long amount of time and also hold a large amount of the tokens in the vault.
How does the reward system work?
Staking rewards are earned in ELONGATE Tokens. The rewards are distributed proportionally to all stakers and are deposited into your total staked amount. For example: if you own 1% of the stake pool, you receive 1% of the staking rewards.
Stakers receive rewards from multiple sources in the ELONGATE vault. Here is a list of reward sources:
On-Chain token reflections (Volume-based from PancakeSwap)
ELONGATE Team airdrops
Staking reward pool - entry & exit fees
Time lock bonus
What are the fees?
5.75% to enter.
5.75% to exit.
15% fee to unstake before time-lock ends + exit fee.
What is the time lock?
Locking your tokens for more than 15 days provides a bonus. You can choose to lock from 15 days up to 180 days. The bonus increases with longer time locks. This bonus essentially provides a discount on the entry fee. When the time lock period ends, your tokens will remain in the staking vault and continue to receive rewards. If you choose to unstake before your time-lock period ends, there is a 15% fee.