Adaptive Staking is the formula that determines what tier you are in for the Rewards Engine. The higher the tier, the more SPN rewards you can receive on a weekly basis.
It is considered to be a more resilient and accurate technique for a token economy to reflect the vested interests of its network participants. It is an unbounded, unfixed token staking model.
Sapien is using Tier Thresholds that are based off of Network Interest.
Tier Thresholds are floating token amounts that dictate the minimum staking required to qualify for a tier. Tier Thresholds are updated on a daily basis in the Sapien Network.
Network Interest is the overall staking effort by network participants in a closed ecosystem.
Adaptive Staking is more resilient to large whales staking SPN as it groups stakers fairly and aligns their interests with the success of the overall token economy. It also provides more liquidity than linear or fixed models because tokens are continually unlocked (available to transfer) over the course of a year. These tokens can be transferred (after approval) but are still considered “staked” in network.
By making utility directly proportional to staking, users aspire to earn more tokens and continue staking in the network. For Sapien, this encourages network stability and the creation of high-quality content while simultaneously mitigating bots, trolls, and fake news.
Please reference the article below for more information on Adaptive Staking.
For more information on how staking is important and necessary for the Sapien platform, please reference the 8 Pillars of SPN Staking presentation.
Please send an email to [email protected] if you need additional help. A Sapien representative is waiting to assist you!