Staking Mechanism

Staking $BOW allows users to participate in the economic incentive mechanism of DogeCity and earn rewards.

Staking Process

Users can stake their $BOW tokens by locking them in a designated smart contract within the DogeCity ecosystem. This process involves sending a certain amount of $BOW tokens to the staking contract, which temporarily locks the tokens for a specified period.

Staking Rewards

By staking $BOW, users become eligible to earn staking rewards. These rewards are distributed based on the amount of $BOW staked and the duration of the staking period. The longer the tokens are staked, the higher the potential rewards.

Reward Calculation

The calculation of staking rewards for $BOW often follows a predetermined formula that takes into account factors such as the total supply of staked $BOW, the duration of staking, and the overall network participation. This ensures a fair distribution of rewards among stakers.

Staking Tiers

Some staking mechanisms may involve different tiers or levels based on the amount of $BOW staked. Higher tiers often offer increased staking rewards or additional benefits. This encourages users to stake larger amounts of $BOW, further supporting the stability and growth of the DogeCity ecosystem.

Unstaking Period

To ensure the stability and integrity of the staking mechanism, there may be an unstaking period during which users cannot withdraw their staked $BOW tokens. This period prevents sudden withdrawals that could disrupt the staking system and provides a cooling-off period for participants.

Governance Voting Power

In addition to earning staking rewards, users who stake $BOW often gain voting power within the DogeCity governance system. This allows them to actively participate in the decision-making process and influence the future direction of the metaverse.

Flexibility and Liquidity

Some staking mechanisms may offer flexibility by allowing users to unstake their $BOW tokens before the end of the staking period. However, early unstaking may result in reduced rewards or penalties. This provides users with some liquidity while still incentivizing long-term participation.