♻️Staking Systems

The content shared in this documentation page about the NOCAP.icu project, is meant to inform people about the NOCAP.icu project and is in not meant as a financial or investment advice. This documentation is purely meant to be a service to the audience to guide them on using the services.

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The NoCap staking systems are designed to provide sustainable, long-term rewards for ecosystem participants through two primary staking options: $NOCAP staking and Liquidity Provider (LP) staking.

Each system is carefully crafted to encourage commitment while ensuring scalability, fairness, and user participation.

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Staking in the NoCap ecosystem rewards users for their commitment by providing returns in either WETH or $NOCAP tokens. A multiplier mechanism further enhances these rewards over time, creating incentives for long-term participation. Here’s how it works:

• $NOCAP Staking: Receive WETH allocated from transaction taxes.

• LP Staking: Earn $NOCAP tokens allocated from transaction taxes.

Both staking systems use the same multiplier mechanics to reward duration-based loyalty while discouraging frequent withdrawals.

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1. $NOCAP Staking: Earn WETH Rewards

Mechanics

Participants stake $NOCAP tokens in exchange for proportional shares of WETH rewards generated from ecosystem revenue streams (e.g., cannabis operations, hardware integrations, and trading fees).

Features:

1. Multiplier Mechanism:

   • Staking weight increases over time to reward long-term stakers.

   • Example: A staker who locks 10,000 $NOCAP tokens for 30 days will see their staking weight double, reaching a 2x multiplier. After 120 days, their weight could increase to 5x (subject to the multiplier cap).

   • Penalty for Unstaking: Partial or full withdrawal resets the multiplier for the withdrawn amount, promoting sustained staking.

2. Reward Distribution:

   • WETH rewards are distributed every 5 days (epoch-based).

   • Payout is proportional to a staker’s weight relative to the total staking pool.

3. Revenue Streams Feeding Rewards:

   • Trading Fees: Revenue generated from $NOCAP token transactions contributes to staking rewards.

   • Cannabis Operations: A share of real-world business profits will be allocated to the staking pool.

   • AI Computing/Mining: Income from hardware infrastructure is funneled into the rewards pool.

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2. LP Staking: Earn $NOCAP Tokens

Mechanics

LP staking incentivizes liquidity provision by rewarding participants with $NOCAP tokens sourced from transaction taxes. This ensures a robust and liquid trading environment.

Key Features:

1. Multiplier Mechanism:

   • Similar to $NOCAP staking, LP staking uses a time-based multiplier to reward liquidity providers who remain staked for extended periods.

2. Reward Distribution:

   • $NOCAP tokens allocated from transaction taxes are distributed to LP stakers.

   • Rewards are allocated every 5 days (epoch-based) to maintain consistent returns.

3. LP Pair Details:

   • Liquidity is typically provided for the $NOCAP/ETH pair on Uniswap (or other supported AMM platforms).

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3. Unified Multiplier Rules

The multiplier mechanism applies to both $NOCAP and LP staking systems, ensuring a consistent and fair reward structure. Here’s how it works:

1. Incremental Growth:

   • Staking weight grows incrementally over time, increasing rewards proportionally.

   • The longer tokens are staked, the greater the staking weight.

2. Reset on Withdrawal:

   • Any partial or full withdrawal of staked tokens resets the multiplier for the withdrawn portion.

   • Remaining staked tokens continue to benefit from the accrued multiplier.

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4. Reward Distribution and Sustainability

Epoch-Based Claiming

• Rewards are distributed on a 5-day cycle (epoch-based) to streamline operations and maintain consistency.

• Users can claim rewards at the end of each epoch, ensuring predictable returns.

Revenue Sources

The staking systems are sustained through diverse revenue streams:

1. Transaction Fees:

   • $NOCAP token buy/sell fees directly fund staking pools, ensuring consistent inflows.

2. Cannabis Operations:

   • A portion of profits from growing and distributing cannabis products is allocated to $NOCAP buybacks and distributed via staking rewards.

   • This introduces real-world asset backing to the rewards system.

3. AI Computing/Mining:

   • Hardware integrated into NoCap’s facilities generates additional income through cryptocurrency mining and decentralized AI services.

4. Liquidity Provision:

   • LP staking increases market liquidity, creating stability and boosting rewards.

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5. Benefits of Staking in the NoCap Ecosystem

1. Passive Income:

   • Stakers earn WETH or $NOCAP rewards, providing a steady stream of income.

2. Incentives for Loyalty:

   • The multiplier mechanism rewards users who commit long-term, fostering ecosystem growth.

3. Sustainability:

   • Rewards will be backed by tangible real-world revenue streams, ensuring stability and resilience.

4. Dual Staking Options:

   • Users can choose between $NOCAP staking (WETH rewards) or LP staking ($NOCAP rewards), offering flexibility and diversification.

5. Alignment with Ecosystem Growth:

   • Staking rewards are tied to the success of the ecosystem, aligning incentives between participants and NoCap’s broader objectives.

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Conclusion

The NoCap staking systems are a cornerstone of the ecosystem, offering sustainable rewards while encouraging long-term participation. By leveraging innovative multiplier mechanics and integrating revenue from real-world assets and advanced technologies, NoCap provides a reliable, scalable, and rewarding experience for all participants. Whether through $NOCAP staking or liquidity provision, users have unparalleled opportunities to grow alongside the ecosystem.