SKYT Profit Sharing Mechanism

Overview

The SKYT profit-sharing mechanism is designed to provide sustainable and attractive returns to token holders through a tiered staking system. The mechanism includes provisions for maintaining competitive APY rates during early stages or lower revenue periods through strategic use of reserved tokens.

Key Parameters

Base Parameters

  • Total Supply: 500,000,000 SKYT
  • Initial Profit-Sharing Pool: 10% of annual profit
  • Reserved Tokens for Supplementation: 20,000,000 SKYT
  • Target Price (Month 18): $1.22

Staking Tiers

Tier Staking Amount (Tokens) Duration (Months) Target APY
1 1,000 - 4,999 3 10%
2 5,000 - 9,999 6 12%
3 10,000 - 19,999 9 15%
4 ≥ 20,000 12 18%

Mechanism Design

1. Profit Share Calculation 

# Example calculation
Annual_Profit = $2,000,000
Profit_Sharing_Pool = Annual_Profit × 0.10  # 10% allocation
Base_Pool = $200,000

2. Tier Weight Calculation 

Tier_Weight = (Aveg_Staking_Amount / Max_Staking_Amount) × (Staking_Duration / Max_Duration)

Weight Factors per Tier

  • Tier 1: 0.0375 (3,000/20,000 × 3/12)
  • Tier 2: 0.1875 (7,500/20,000 × 6/12)
  • Tier 3: 0.5625 (15,000/20,000 × 9/12)
  • Tier 4: 1.0000 (20,000/20,000 × 12/12)

3. APY Supplementation

Token Price Consideration

APY Adjustment based on token price to maintain target returns:

def calculate_supplemental_tokens(tier, current_apy, target_apy, token_price):
    shortfall = target_apy - current_apy
    supplemental_amount = (staked_value × shortfall) / token_price
    return supplemental_amount

Reserved Token Allocation

  • Maximum annual supplementation: 5% of reserved tokens
  • Dynamic distribution based on tier weights
  • Automatic adjustment based on profit levels

Implementation Details

1. Staking Process

Entry Requirements

  • Minimum staking period per tier
  • Token locking mechanism
  • Smart contract implementation

Staking Rewards 

# Regular profit share
base_reward = (stake_amount × tier_weight × profit_pool) / total_weighted_stakes

# Supplemental tokens if needed
supplemental_tokens =
calculate_supplemental_tokens(tier, current_apy, target_apy, token_price)

total_reward = base_reward + (supplemental_tokens × token_price)

2. Early Unstaking Penalties

Unstaking Time Penalty
< 25% duration 50%
25-50% duration 25%
> 75% duration 10%

3. Reward Distribution

Distribution Frequency

  • Monthly reward calculations
  • Quarterly token buybacks
  • Annual supplemental token distribution

Distribution Method 

def distribute_rewards(staker):
    base_profit = calculate_base_profit(staker)
    supplemental_tokens = calculate_supplemental_tokens(staker)
    
    if needs_supplementation(base_profit, staker.tier):
        distribute_supplemental_tokens(staker, supplemental_tokens)
    
    distribute_base_profit(staker, base_profit)

Sustainability Measures

1. Reserved Token Management

  • Annual cap on supplemental token usage
  • Gradual reduction in supplementation
  • Market impact consideration

2. Dynamic Adjustments

  • Quarterly review of profit-sharing percentages
  • Annual review of tier structure
  • Market condition adaptation

Example Calculations

Tier 1 Example

  • Staked Amount: 3,000 SKYT
  • Token Price: $1.22

  • Staked Value: $3,660

  • Base Profit Share: $4.43
  • Required for 10% APY: $366
  • Supplemental Amount: $361.57
  • Supplemental Tokens: 296.36 SKYT

Tier 4 Example

  • Staked Amount: 20,000 SKYT
  • Token Price: $1.22

  • Staked Value: $24,400

  • Base Profit Share: $1,652.53
  • Required for 18% APY: $4,392
  • Supplemental Amount: $2,739.47
  • Supplemental Tokens: 2,246.28 SKYT

Risk Management

Market Considerations

  • Token price volatility impact
  • Trading volume monitoring
  • Liquidity management

Sustainability Checks

  • Reserved token depletion rate
  • APY sustainability analysis
  • Market impact assessment

Future Adjustments

Planned Evolution

  • Gradual reduction in supplementation
  • Increased profit-sharing percentage
  • Additional tier benefits
  • Enhanced staking options

Governance Integration

  • Community voting on adjustments
  • Parameter modification proposals
  • Transparency reporting

Technical Implementation

Smart Contract Structure 

struct Stake {
    uint256 amount;
    uint256 startTime;
    uint256 duration;
    uint8 tier;
    bool active;
}

struct TierInfo {
    uint256 minAmount;
    uint256 duration;
    uint256 targetAPY;
    uint256 weight;
}

Monitoring and Reporting

  • Real-time APY tracking
  • Token distribution monitoring
  • Staking analytics
  • Performance metrics

Appendix

APY Calculation Formula 

APY = (Base_Profit_Share + Supplemental_Value) / Staked_Value × 100%

Tier Weight Formula 

Weight = (Average_Stake / Maximum_Stake) × (Duration / Max_Duration)

Reserved Token Usage

  • Annual usage cap: 1,215,940 tokens
  • Distribution by tier
  • Tracking mechanism