F1® Delta Time — All About Staking
Staking is launching in F1® Delta Time on 15 September 2020. Read on to learn more about this exciting and innovative feature if you want your NFTs to generate REVV for you!
Staking enables owners of F1® Delta Time car NFTs to earn REVV by staking their NFTs. The amount of REVV earned by staking is determined primarily by the rarity of the NFT, with rarer items generating greater returns.
In blockchain, the term ‘staking’ usually refers to Proof-of-Stake blockchain protocols that use pools of that blockchain’s native token to produce blocks. Explained simply: if a user allocates an amount of this native currency to assist in block production, each block created returns a reward to that user. This system rewards users who are invested in the ecosystem by allowing them to earn dividends by allocating (staking) their assets.
Staking in F1® Delta Time is a little different in that it refers to the staking of non-fungible tokens (NFTs). This article explains how this ground-breaking feature will function.
The Staking Pool
F1® Delta Time has a total REVV allocation of 500,000,000. This total is divided across 4 main pools: Reserve, Game Operations, Marketing & Promotion, and Staking. The Staking Pool has a total allocation of 30,000,000 REVV.
For the upcoming Staking launch on 15 September 2020, there will be an allocation (from the Staking Pool) for 2019 Car NFT Staking of 12,040,000 REVV, split into two Staking Terms. The first Term will reward a total of 2,040,000 REVV, and the second Term will reward 10,000,000 REVV.
The first 2019 NFT Staking Term will run for 4 weeks, starting on 15 September 2020 (Hong Kong Time).
In this article we’ll focus on this first Term which has a reward pool of 2,040,000 REVV.
At A Glance: Payout Formula
Full Staking Term Payout Schedule
The Payout Schedule in the below chart displays the amount of REVV earnable for each Claim Interval during the Staking Term.
The Claim Interval is the time interval before REVV can be claimed. REVV that has been earned is claimable every 3 days, also known as cycles. One Claim Interval is therefore three days/cycles. The below chart displays the amount of REVV that can be earned for each Claim Interval (the Claim Intervals are shown on the X axis).
The potential earnings from Staking a F1® Delta Time car NFT are dependent on the rarity of that NFT. This means that an Apex rarity car will have a higher yield than a Common rarity car.
But rarity is only one factor, because the Staking earnings are ultimately defined by the Weight of the NFT within the wider Staking pool. Higher Weight NFTs provide higher base returns, but those returns are also modified by the entire range of NFTs that have been staked.
To illustrate Weight, the below table displays the minimum potential earnings for a scenario in which the entire population of F1® Delta Time car NFTs are staked at the same time, for the entire duration of this first Staking Term.
*One of the 7 currently available Apex cars — the Australia Edition — is a 2020 Season car, and will be usable for Staking after the 2020 Staking Term launches.
- Rarity Tier: There are five tiers of NFT rarity in F1® Delta Time, with the rarity relating to the potential stats of the NFT as well as the scarcity of the NFT. The scarcest rarity with the highest potential statline is the Apex tier, followed by Legendary, Epic, Rare and Common tiers.
- Population: This refers to the number of car NFTs currently in circulation. It should be noted that there are unopened F1® Delta Time 2019 crates being held by users. When opened, these crates will add to the car population (every crate has a chance to contain a car) and will therefore affect the potential earn per-car if they are staked. This will not affect the total size of the Staking Pool.
- Weight: This determines the potential earnings of a car NFT as other cars are staked during the same Staking Term. Each car NFT has a Weight that it carries, with each rarity of car having the same Weight (e.g. all Epic cars have the same Weight). Weight can be looked at like a rank, where a higher Weight is guaranteed to earn more than a lower Weight. The Weight also allows the earnings of REVV per-car to be dynamic for when new cars are staked or un-staked. It ensures that the NFTs retain a relative earning based on their rarity, regardless of the number of NFTs staked. Weight is derived from the scarcity of an NFT, as well as factoring in current market valuation.
- Minimum REVV Earn Per-Car: The minimum potential earn presents a scenario in which all available NFTs are staked for the entire duration of the Staking Term (4 weeks in this case). If your car is staked for the full 4 weeks of this Term, you will receive at least this amount of REVV.
Staking Design and Terminology
Here we will highlight some of the core components and terms of Staking.
- Earnings: NFTs will earn an amount of REVV for each day that they are staked. Although earned, this REVV isn’t immediately available to be claimed and it is not sent automatically to the owner’s wallet. The owner must wait for the current Claim Interval (explained below) to be completed before they can claim any REVV earned.
- Cycle: a cycle is equivalent to a standard 24-hour day. The cycle refers to the frequency at which the total Staking Weight will be adjusted. Each cycle, the current staked NFTs are reviewed, and the potential earnings are adjusted. The Weight doesn’t change during the cycle, it only changes upon the start of the next cycle.
- Claim Interval: the amount of time a user has to wait until they can claim the most recently earned REVV. For the current Staking Term, the Claim Interval is 3 cycles (meaning 3 days). So every 3 days in the Staking Term, users who have staked NFTs will be able to claim the REVV they have earned.
- Claim: REVV that has been earned during a Claim Interval is not automatically sent to the wallet of the user. The user needs to claim the REVV they have earned. REVV can be claimed at the end of every Claim Interval. REVV that is earned during a Claim Interval cannot be claimed while that Interval is still in progress, it can only be claimed once the Interval is complete. A user doesn’t need to claim the REVV every Interval, because any unclaimed REVV will remain waiting for users to claim it at their convenience.
- Staking: When staking an NFT, its Weight is counted toward the owner’s total stake from the day it is staked. When un-staking an NFT, its weight no longer counts to the owner’s total stake from the day of the un-staking.
- Lock-Up: When staking and un-staking NFTs, there are NFT lock-ups: first, a staked NFT cannot be un-staked within the same day that it was staked and the following day; second, an NFT that has been un-staked cannot be re-staked within the same day. These rules ensure that users cannot un-stake and re-stake on the same day to receive a full day of earnings.
- Staking Transactions: the staking contract runs on mainnet Ethereum, and to stake a car NFT the owner will be required to send the NFT to the staking contract. Un-staking and claiming REVV will also require a user transaction. Be advised that transactions on Ethereum require payment of Gas fees.
Staking Smart Contract
For those curious, the staking smart contract for this first Staking Term and the audit report (CertiK Foundation) can be viewed here.
With the launch of Staking only days away, now is the time to get some car NFTs. You can purchase suitable 2019 cars on OpenSea right now.
Also, if you haven’t seen it yet, we will be running REVV competitions for the upcoming Grand Prixs, starting with the Tuscan Grand Prix 2020. To learn more, check out this article.
Any questions, give us a shout!
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Originally published at https://medium.com/@f1deltatime on September 11, 2020.