Staking

This document will provide an overview of $XNET staking which is designed to align long-term incentivizes for deployers.

Overview

XNET staking is designed to reward stakers based on how long they commit their tokens. Whether you're locking in for 14 days or going full 365, your returns grow with your commitment. This system is transparent, non-inflationary, and composable — designed for real stakers building real infrastructure.

$XGT - XNET Governance Token

How Staking Works

1. Lock $XNET

Head to xnet.foundation/stake:

  • You choose a lock duration between 14 and 365 days

  • A linear multiplier is calculated instantly

  • You receive a Stake Receipt Token $XGT (proof of stake) 🧨 Warning: Losing or burning your $XGT = permanent loss.

The longer your lock, the better your multiplier — and the more daily rewards you earn.

2. Earn Daily Rewards

Rewards accumulate daily in the background, calculated as:

daily_reward = staked_amount × base_rate × multiplier

3. Claim Rewards then Unstake

When the lock ends:

  • Be sure to Claim your rewards FIRST

  • Unstake your tokens which burns your $XGT and returns your initial $XNET stake.

If you unstake and then claim, you will forfeit all APY rewards. To receive your rewards, you must claim first before burning your $XGT.

⚠️ Burning or losing your XGT Receipt Token before claiming results in permanent loss of your stake and rewards. The staking protocol does not support recovery of lost receipt tokens.

Your receipt token = proof of ownership. Protect it.

Technical Breakdown

Multiplier Formula (Linear)

multiplier = 1 + ((duration_days - 14) / (365 - 14)) × 0.646

  • Starts at 1.0x on day 14

  • Reaches 1.646x on day 365

  • Grows linearly across the range

Base Rate

base_rate = 0.0003288 XNET per token per day at 1x multiplier

Reward Examples

Strategy A: Re-stake Every 14 Days (Short-Term Loop)

  • Stake: 1000 XNET

  • Lock: 14 days (x26 cycles per year)

  • Multiplier: 1.0x

  • Daily Reward: 1000 × 0.0003288 = 0.3288 XNET

  • Reward per cycle: 0.3288 × 14 = 4.6032 XNET

  • Annual Total: 4.6032 × 26 ≈ 119.68 XNET

Strategy B: Stake Once for 365 Days (Full Commitment)

  • Stake: 1000 XNET

  • Lock: 365 days

  • Multiplier: 1.646x

  • Daily Reward: 1000 × 0.0003288 × 1.646 ≈ 0.5413 XNET

  • Annual Total: 0.5413 × 365 ≈ 197.57 XNET

Result:

  • 197.57 XNET from full-year stake (365 Day Lock)

  • 119.68 XNET from constant re-staking (14 Day Lock Restake) +65% yield boost by committing long-term

Mid-Term Examples

Duration
Multiplier
Daily Reward (1000 XNET)
Total Reward

90 days

~1.165

~0.3829 XNET

~34.5 XNET

180 days

~1.292

~0.4247 XNET

~76.45 XNET

365 days

1.646

0.5413 XNET

197.57 XNET

APR Formula

To calculate estimated APR:

APR = base_rate × multiplier × 365 × 100

Example (365-day stake):

APR = 0.0003288 × 1.646 × 365 × 100 ≈ 19.7%

Protocol Flow

  1. Connect Solana wallet

  2. Choose XNET amount + lock duration

  3. Protocol mints:

    • Stake Receipt (on-chain proof)

    • Stake Token (claim token)

  4. Rewards accrue daily

  5. At end of lock, burn token → receive stake + rewards

Staking FAQ

What is staking?

Locking XNET to earn yield. Staking aligns incentives, supports the protocol, and rewards long-term thinking.

Can I unstake early?

No. This is commitment-based staking. You can only unstake after the lock period ends.

What are Receipt Tokens?

Temporary synthetic tokens representing your locked position. They are burned when you unstake. If lost, your stake is unrecoverable.

What is the Reward Pool?

A vault of XNET used to pay daily rewards. Controlled, pre-funded, non-inflationary.

Can I open multiple stakes?

Yes. Every stake creates an independent position with its own timeline and multiplier.

Reward Pool Sustainability

XNET staking is powered by a pre-funded, capped Reward Pool of 6,000,000 XNET. No inflation, no dilution — rewards are earned from a fixed emission pool, ensuring long-term sustainability.

🔒 Estimated Lock Rate

We estimate that 5% to 10% of the current circulating supply will be locked in staking:

  • Circulating supply: 110,000,000 XNET

  • Estimated locked: 5.5M – 11M XNET

📉 Annual Emissions Based on 16% Average APR

  • Low estimate (5.5M locked): 5,500,000 × 0.16 = 880,000 XNET/year

  • High estimate (11M locked): 11,000,000 × 0.16 = 1,760,000 XNET/year

Reward Pool Longevity

% Circulating Supply Staked
Estimated Duration

5% (5.5M XNET)

~6.8 years

10% (11M XNET)

~3.4 years

Key Insight

At current projections, the 6M XNET Reward Pool can sustainably power staking for 3.4 to 6.8 years, depending on participation rates and lock durations.

Higher commitment = faster emissions — but also stronger network alignment.

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