Real-Yield Rewards

The Libertas Treasury generates ETH native token rewards (real-yield). Let’s start with a simple example: For this example, we will consider the transaction of $50.00 Sell & $50.00 buy.

5% of the selling tax & 6% of the buying tax will enter the Libertas Treasury, i.e.

($50.00)(0.05) + ($50.00)(0.06) —--------------------> Libertas Treasury

$2.50 + $3.00 —--------------------> Libertas Treasury

$5.50 —--------------------> Libertas Treasury

Note: The Libertas Treasury allocation will be converted into ETH before entering the Libertas Treasury; hence there will not be an influx of $5.50 worth of ETH that has entered the Libertas Treasury. Now, 0.0.1375$ worth of ETH will be the amount allocated and distributed as yield rewards from that one transaction.

For this reward structure, there are 2 factors to consider

1. Staking pool options. (30 days staking, 60 days, 90 days, etc)

2. Snapshot at the time of staking which records the amount in $ value of $XLB staked in the staking pool.

If Libertas treasury has 1000 ETH, then the daily yield rewards would be:

1000 ETH * 10% /365 = 0.27 ETH

Where,

1000 ETH is the ETH collected in the Libertas treasury,

10% is the percentage of yield shared over one year.

Below is the fixed % reward structure based on the staking pool.

	Days	Reward - (based on treasury payouts)	Annualized Reward
Staking Option #1	30	0.50%	6.26%
Staking Option #2	60	1.10%	6.88%
Staking Option #3	90	1.90%	7.93%
Staking Option #4	180	4%	8.28%
Staking Option #5	365	10%	10.00%

The annualized rewards are weighted in such a way that it rewards long-term stakers.

Now, adding the total value locked in every staking pool,

	Days	Reward - (based on treasury payouts)	Annualized Reward	Initial amount locked (TVL)
Staking Option #1	30	0.50%	6.26%	$1,027.00
Staking Option #2	60	1.10%	6.88%	$122.00
Staking Option #3	90	1.90%	7.93%	$264.00
Staking Option #4	180	4%	8.28%	$172.00
Staking Option #5	365	10%	10.00%	$387.00

From the additional column (initial amount locked definition: $ values denoting the total value locked in each pool), the initial amount locked is not equal among the 5 staking pools purposefully to show the difference in reward distribution.

	Initial amount locked (TVL)	Annualized Reward	Annualized Reward * Initial amount locked	Weight (annualized reward by pool/ Total annualized rewards)	Amount Paid (ETH) DAILY per staking pool option
Staking Option #1	$1,027	6.26%	$64.25	43.85%	0.120135039
Staking Option #2	$122	6.88%	$8.40	5.73%	0.015698045
Staking Option #3	$264	7.93%	$20.94	14.29%	0.039155507
Staking Option #4	$172	8.28%	$14.24	9.72%	0.026622343
Staking Option #5	$387	10.00%	$38.70	26.41%	0.072361669

The rewards will be distributed according to each staking pool's $XLB staked (weight).