$VULT Staking

This describes $VULT staking mechanism

Users can stake $VULT tokens in the Vultisig Staking contract on Ethereum mainnet to earn rewards from ecosystem revenue.

Key Features

• Inspiration by Sushiswap MasterChef staking

• Revenue Sources: Rewards come from ecosystem integrations including bridge, swap and marketplace fees

• Fair Distribution: Decay-based distribution mechanism prevents frontrunning and rewards long-term stakers

• Flexible Participation: No lockup periods—stake or unstake anytime

Reward Distribution Mechanism

The decay-based distribution works as follows:

1. Rewards enter the staking contract and distribute gradually based on configured parameters

2. Distribution uses two key variables:

   • Decay Interval: Time between distributions (e.g., 1 day)

   • Decay Factor: Percentage distributed each interval (e.g., 10%)

The vesting configuration may be updated periodically to ensure that, as revenue grows, the distribution mechanics adapt to effectively channel the increased value to stakers

Example Distribution

With a 1-day decay interval and 10% decay factor, a 1000 USDC reward would distribute:

• Day 1: 100 USDC (10% of 1000)

• Day 2: 90 USDC (10% of remaining 900)

• Day 3: 81 USDC (10% of remaining 810)

• And so on until fully distributed

This system accommodates additional rewards during ongoing distributions, smoothing out fluctuations between high and low fee periods.

Launch Configuration:

TBD

Governance

$VULT stakers will possibly be able to vote on the Decay Interval and Decay Factor at a later date.