Rewards Structure

Overview

Once a user's staking NFT has completed its maturity period and is in a locked state, it becomes eligible to generate and accumulate staking rewards. The reward system in StarGate is designed to incentivize both participation and continued engagement in the network’s security and operation.

There are two primary types of rewards available to eligible participants:

1. Base Rewards

Base rewards are generated directly from the user’s staked VET. These rewards are generated by the VeChain protocol following the following generation rate:

VTHO = VET_STAKED × 5×10^-9 × time_since_last_claim_in_seconds

Base rewards will be removed when Hayabusa will be released.

2. Staking Program Rewards

Staking rewards are additional incentives provided through the StarGate Staking Program, a foundation-managed initiative designed to bootstrap participation in the early phases of StarGate. These rewards are distributed to users who actively participate in delegation by locking their staking NFTs.

It is important to note that only users who:

• Have completed the maturity period, and

• Have their NFTs in a locked state

are eligible to earn both rewards. Users who stake VET but do not lock their NFT will only accumulate base rewards until Hayabusa launch.

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Claiming Rewards

Reward accumulation begins immediately after the NFT becomes eligible (i.e., maturity is reached and the NFT is locked). From that point, rewards are calculated and credited continuously with each new block on the VeChainThor blockchain.

However, rewards become claimable on a 7-day cycle:

• Every 7 days, rewards are unlocked and made available for claiming.

• With auto-renew enabled, the cycle resets, and accumulation continues toward the next 7-day claim window.

• If a user chooses not to claim their rewards at the end of the cycle, the unclaimed amount continues to accrue and can be claimed later without penalty.

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Program Expiry and Unclaimed Rewards

The StarGate Staking Program is a time-bound incentive initiative, that serves to bootstrap StarGate before Hayabusa. When the bootstrap program reaches its designated end:

• Users will no longer accumulate new staking rewards through the program.

• However, any unclaimed rewards accumulated prior to the program’s end will remain available for claiming until the user retrieves them.

• Users staking rewards will continue, but will be tied directly to Hayabusa, therefore to the protocol and depend on the validator with which the user has paired with. Base rewards will end as no longer supported by the protocol.