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  1. EXAMPLE 5
  2. ---------
  3.  
  4. start with 4 people:
  5. A has 10k and qualifies for a 50% bonus on all stakes
  6. B has 12k and qualifies for a 25% bonus on all stakes
  7. C has 15k and doesn't get any bonuses
  8. D has 10k and qualifies for a 20% bonus on all stakes
  9. note that 150% of 10k = 125% of 12k = 100% of 15k, so A, B, C can all get the same number of shares
  10.  
  11. day 1:
  12.  
  13. all of them open stakes on day 1; the price is initially 1 hex per share. A,B,C get 15k shares each, D gets 12k shares. total 57k shares
  14. let's say the pool pays a return of 10% to 0% bonus stakes on the first day. to do that we need to calculate the effective amounts staked. the 10k guy with the 50% bonus is effectively staking 15k for example. so we have 57k hex effectively staked, and 57k shares. the payout for will be 5700 hex:
  15.  
  16. 'effective stake' (col 4) is the amount staked (col 2) with the bonus (col 3) added on
  17. 'stake value' (col 7) is hex staked (col 2) plus daily profit (col 6) - it is the amount the staker actually gets if they end their stake
  18. 'effective value' (col 8) is effective stake (col 4) plus daily profit (col 6) - it is the amount their stake would be worth if their bonus had multiplied their coins as well as their shares
  19. 'next price' (col 9) is effective value (col 8) divided by number of shares (col 5) - note that you can use any of the 4 stakes to determine tomorrow's price - they all give the same number (and it's 1.1 because the daily return was 10%), and of course dividing the sum of (col 8) by the sum of (col 5) also gives the same price
  20.  
  21. (2)+(3) (2)+(6) (4)+(6) (8)/(5)
  22. effective daily stake effective next
  23. who staked bonus stake shares profit value value price
  24. ---1 ------2 -----3 ---------4 ------5 ------6 -----7 ---------8 -----9
  25. A 10000 50% 15000 15000 1500 11500 16500 1.1
  26. B 12000 25% 15000 15000 1500 13500 16500 1.1
  27. C 15000 0% 15000 15000 1500 16500 16500 1.1
  28. D 10000 20% 12000 12000 1200 11200 13200 1.1
  29. --- ------ ----- --------- ------ ------ ----- --------- -----
  30. 57000 57000 5700 52700 62700 1.1
  31.  
  32. day 2:
  33.  
  34. let's say none of them pull out, and that today the pool pays 10% again (to 0% bonus stakes). C has no bonus, and is worth 16.5k. 10% means he should get 1650. he's getting 15k/57k of the profit, so the whole pool needs to get 1650*57/15 = 6270 (which is 10% of the effective value (col 8))
  35.  
  36. (2)+(3) (2)+(6s) (4)+(6s) (8)/(5)
  37. effective daily stake effective next
  38. who staked bonus stake shares profit value value price
  39. ---1 ------2 -----3 ---------4 ------5 ------6 -----7 ---------8 -----9
  40. A 10000 50% 15000 15000 1650 13150 18150 1.21
  41. B 12000 25% 15000 15000 1650 15150 18150 1.21
  42. C 15000 0% 15000 15000 1650 18150 18150 1.21
  43. D 10000 20% 12000 12000 1320 12520 14520 1.21
  44. --- ------ ----- --------- ------ ------ ----- --------- -----
  45. 57000 57000 6270 58970 68970
  46.  
  47. note that the pool has paid out a compounded 10% both days, and the price per share has also increased 10% per day 1 -> 1.1 -> 1.21
  48. the price per share is the same as the return made by a 0% bonus staker since the start. C's 15k has turned into 15*1.21 = 18.15k
  49.  
  50. let's check this by having a day with 40% returns. everyone stays staked again:
  51.  
  52. day 3:
  53.  
  54. pool pays 40% of effective value: 0.4 * 68970 = 27588
  55.  
  56. (2)+(3) (2)+(6s) (4)+(6s) (8)/(5)
  57. effective daily stake effective next total percentage
  58. who staked bonus stake shares profit value value price profit profit
  59. ---1 ------2 -----3 ---------4 ------5 ------6 -----7 ---------8 -----9
  60. A 10000 50% 15000 15000 7260 20410 25410 1.694 10410 104.1 : 50% more than C's profit [69.4 * 1.5 = 104.1]
  61. B 12000 25% 15000 15000 7260 22410 25410 1.694 10410 86.75 : 25% more than C's profit
  62. C 15000 0% 15000 15000 7260 25410 25410 1.694 10410 69.4 : 40% on 10% on 10% (1.1*1.1*1.4 = 1.694)
  63. D 10000 20% 12000 12000 5808 18328 20328 1.694 8328 83.28 : 20% more than C's profit
  64. --- ------ ----- --------- ------ ------ ----- --------- -----
  65. 57000 57000 27588 86558 96558 1.694
  66.  
  67. now the next price is 1.694, which is 1.1 * 1.1 * 1.4, as expected after three days returning 10%, 10%, 40%
  68.  
  69. so by now we're happy that the new share price multiplier each day is simply the return multiplier. let's check what happens when a staker with a bonus tries to externally compound
  70.  
  71. day 4:
  72.  
  73. if C ends stake he gets his stake value (col 7) [it's his initial 15k plus the profits from days 1 (1500), 2 (1650), and 3 (7260): 15e3+1500+1650+7260 = 25410]
  74. at a price of 1.694 that gets him 25410/1.694 = 15000 shares - the same as he had already
  75.  
  76. if B ends stake. he gets his stake value (col 7) [it's his initial 12k plus the profits from days 1 (1500), 2 (1650), and 3 (7260): 12e3+1500+1650+7260 = 22410]
  77. at a price of 1.694, and assuming he's still getting a 25% bonus that gets him 22410*1.25/1.694 = 16536 shares - that's more than he had before. it looks like he can beat the system by externally compounding, but that's because the example was dumb. nobody gets a 25% bonus and can end stake without penalty after 3 days. it does make me worry however that the system maystill be gameable.
  78.  
  79. I can get 20% bonus for each extra year I stake.
  80. If I stake for 12 sets of 30 days I get a bonus of 1.6438% for each stake 1 + 0.20 * 30/365 = 1.016
  81. If instead I stake for the whole 371 days I get 20.3287% for the stake 1 + 0.20 * 371/365 = 1.203 (12 30 day stakes take 371 days due to having to skip a day between stakes)
  82.  
  83. Compounding 12 30 day stakes gives a return that is (1 + 0.20 * 30/365) ** 12 = 1.216 times better than having no bonus
  84. A single 371 day stake gives a return that is (1 + 0.20 * 371/365) ** 1 = 1.203 times better than having no bonus
  85.  
  86. The 12 sets of monthly stakes pays slightly better...
  87.  
  88. The problem is that you're trying to offset an exponential bonus (from manually restaking) with a linearly growing bonus (longer pays better). Same old story: exponential beats linear!
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