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Staking Mechanism

Earning Rewards While Supporting the Ecosystem

Project J's staking mechanism creates a powerful incentive system that rewards long-term holders, reduces token velocity, and distributes platform revenue to committed community members.

Staking Overview

graph TB
subgraph "Staking Options"
NFT[NFT Staking<br/>Launch Priority]
TOKEN[Token Staking<br/>Q3 2025]
LP[LP Staking<br/>Future]
COMBO[NFT + Token<br/>Maximum Rewards]
end

subgraph "Reward Sources"
PLATFORM[Platform Revenue]
TRADING[Trading Fees]
IPFI[IPFi Services]
SPECIAL[Special Events]
end

subgraph "Benefits"
APY[Up to 45% APY]
GOV[Governance Power]
ACCESS[Exclusive Access]
MULTI[Multipliers]
end

NFT --> APY
TOKEN --> APY
LP --> APY
COMBO --> APY

PLATFORM --> APY
TRADING --> APY
IPFI --> APY
SPECIAL --> APY

APY --> GOV
APY --> ACCESS
APY --> MULTI

NFT Staking (Launch Priority)

Genesis NFT Staking Program

First Staking Mechanism to Launch

The Gatchaman Genesis Collection (1,999 cards) will be the first stakeable assets:

NFT Staking Tiers:

NFT RarityBase Power$J EquivalentBase APY
Common1001,000 $J15%
Rare5005,000 $J20%
Epic2,00020,000 $J25%
Legendary10,000100,000 $J30%
Mythic50,000500,000 $J35%

Staking Benefits:

  • Immediate revenue share from platform fees
  • No lock-up period for NFTs
  • Combine multiple NFTs for higher rewards
  • Exclusive access to new IP drops

Set Bonuses:

Complete Gatchaman Team (5 unique characters):
├─ 2x staking power multiplier
├─ Exclusive team NFT airdrop
├─ Priority in tournaments
└─ Special governance rights

NFT Staking Rewards Calculation

def calculate_nft_rewards(nft_collection):
base_power = sum(nft.staking_power for nft in nft_collection)

# Apply set bonuses
if has_complete_set(nft_collection):
base_power *= 2

# Time multiplier (increases over time)
time_multiplier = get_time_multiplier(staking_duration)

# Calculate share of reward pool
total_power = get_total_staked_power()
user_share = base_power / total_power

# Apply to reward pool
period_rewards = get_period_reward_pool()
user_rewards = period_rewards * user_share * time_multiplier

return user_rewards

Token Staking (Phase 2)

Flexible Staking Options

Multiple Lock Periods with Increasing Rewards

Lock PeriodMinimum StakeBase APYMax APYEarly Unlock Penalty
Flexible1,000 $J5%8%None
30 days5,000 $J10%15%10%
90 days10,000 $J15%25%20%
180 days25,000 $J20%35%30%
365 days50,000 $J25%45%50%

Reward Distribution:

  • Daily compounding
  • Claim anytime (flexible) or at maturity (locked)
  • Auto-compound option for maximum returns
  • Emergency unlock available with penalty

Time Multiplier System

Curve Finance Inspired Model

Time Multipliers:
├─ 1 week: 1.0x (no bonus)
├─ 1 month: 1.1x
├─ 3 months: 1.25x
├─ 6 months: 1.5x
├─ 1 year: 2.0x
├─ 2 years: 2.25x
└─ 4 years: 2.5x (maximum)

How It Works:

  1. Multiplier increases linearly over time
  2. Applies to both NFT and token staking
  3. Resets if tokens are unstaked
  4. Transferable as veNFT (future feature)

Example Calculation:

  • Stake: 100,000 $J for 1 year
  • Base APY: 25%
  • Time multiplier at 1 year: 2.0x
  • Effective APY: 25% × 2.0 = 50%
  • Annual rewards: 50,000 $J

Combined Staking (Maximum Rewards)

NFT + Token Synergy

Stack Multiple Staking Types for Compound Benefits

Combination Bonuses:

CombinationBonus MultiplierAdditional Benefits
NFT + Token1.3xExclusive events access
NFT + LP1.4xTrading fee rebates
Token + LP1.35xGovernance boost
All Three1.5xVIP status, maximum rewards

Example Setup:

Optimal Staking Portfolio:
├─ 5 Genesis NFTs (various rarities)
├─ 100,000 $J tokens (365-day lock)
├─ 50,000 $J in LP tokens
└─ Total effective APY: 67.5%

Smart Contract Integration:

struct CombinedStake has key {
staker: address,
nft_stakes: vector<NFTStake>,
token_stake: TokenStake,
lp_stake: Option<LPStake>,
total_power: u64,
multipliers: Multipliers,
last_claim: u64
}

Scholarship Staking (Future Feature)

Automated NFT Lending Program

Stake NFTs to Enable Scholarships

How It Works:

  1. Stake NFTs in scholarship pool
  2. Set revenue sharing terms (40/40/20 split)
  3. Scholars apply and get matched
  4. Smart contract manages everything
  5. Earn passive income + staking rewards

Benefits for Stakers:

  • Double rewards (staking + scholarship revenue)
  • No active management required
  • Increased NFT utility
  • Help grow the ecosystem

Revenue Model:

Scholarship Revenue Flow:
├─ 40% → Scholar (player)
├─ 40% → NFT Staker
├─ 15% → Staking reward pool
└─ 5% → Platform operations

Reward Pool Management

Revenue Sources for Staking Rewards

Where Staking Rewards Come From

  1. Platform Trading Fees: 30% of all trading fees
  2. IPFi Services: 25% of IPFi revenue
  3. Game Transaction Fees: 20% allocation
  4. Special Events: Tournament fees, promotional campaigns
  5. Partnership Revenue: Collaboration income

Monthly Reward Pool Calculation:

Total Platform Revenue: $1,000,000
├─ Trading Fees Component: $300,000 × 30% = $90,000
├─ IPFi Revenue: $200,000 × 25% = $50,000
├─ Game Fees: $500,000 × 20% = $100,000
└─ Total Staking Pool: $240,000/month

Distribution Formula:

user_rewards = (user_staking_power / total_staking_power) * reward_pool

Staking Dashboard Features

Real-Time Analytics

Comprehensive Staking Interface

Dashboard Elements:

  • Current staking positions
  • Real-time APY calculations
  • Reward accumulation tracker
  • Time multiplier progress
  • Unstaking countdown
  • Historical performance

Advanced Features:

  • Reward calculator/simulator
  • Optimal staking strategies
  • Market comparison tools
  • Tax reporting exports
  • Mobile app integration

Risk Mitigation

Security Measures

Smart Contract Security

  • Multi-sig controls
  • Time-locked operations
  • Emergency pause function
  • Regular audits
  • Bug bounty program

Economic Protection

  • Sustainable reward rates
  • Reserve fund backing
  • Dynamic APY adjustment
  • Anti-whale measures
  • Gradual reward vesting

Staking Governance

veJ Token System (Future)

Convert long-term stakes into voting power:

veJ Calculation:
veJ = $J amount × time remaining / max time

veJ Benefits:

  • Enhanced governance weight
  • Revenue sharing boost
  • Exclusive proposal rights
  • Priority access to features

Economic Impact

Staking Metrics Projections

MetricYear 1Year 2Year 3
Total Value Staked$10M$50M$150M
Average APY25%30%35%
Staking Ratio35%45%55%
Rewards Distributed$2.5M$15M$52.5M

Token Velocity Reduction

Staking significantly reduces token velocity:

  • 35-55% of supply locked in staking
  • Average lock period: 6 months
  • Reduced selling pressure
  • Price stability enhancement

Conclusion

Project J's staking mechanism creates a virtuous cycle where:

  • Long-term holders are rewarded with substantial yields
  • Platform success directly benefits stakers
  • Token velocity is reduced, supporting price
  • Community alignment is achieved through shared rewards

With NFT staking launching first, followed by token and LP staking, we provide multiple ways for community members to earn while supporting the ecosystem's growth.


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