Understanding the Basics of the New Mining Mechanism
Ryan Tian — January 25th 2021
Both USDC/USDT and FNX contributors in the USDC/USDT and FNX liquidity pools can participate in FNX mining, by simply staking FPT-USDC/USDT or FPT-FNX* pool share tokens in the mining contract.
Each user’s mining power is calculated according to her/his amount of FPT-USDC/USDT or FPT-FNX tokens staked.
Each FPT-USDC/USDT or FPT-FNX counts as 1 point, while a group of overlapping FPT-USDC/USDT and FPT-FNX is considered 20 points.
The goal of the mining system is to increase the Total Value Locked (TVL) in the FinNexus Protocol for Options (FPO), especially in the USDC/USDT pool. When calculating the overlapping FPT-USDC/USDT and FPT-FNX groups, different weights will be given to the two FPT tokens, with FPT-USDC/USDT scoring 10 times higher than FPT-FNXs.
The share/weight of a miner is calculated as his/her mining score divided by the total score of all miners.
The total basic mining reward is set to be 20,000 FNX/Day.
FPT-FNX is required to be locked for a minimum period of 15 days to participate in basic mining. FPT-USDC/USDT does not require to be locked.
User’s mining score = amt of FPT-USDC/USDT + amt of FPT-FNX + min(amt of FPT-USDC/USDT, 10×amt of FPT-FNX)×20 Share of a miner = one’s mining score / total score of all miners Basic mining Amt = Total Basic Reward × Share of a miner Total Basic Reward = 20,000 FNX/Day
A reward multiplier is added to the basic mining amount.
The longer one locks FPT-FNX, the higher the boost will be. (See table below.)
The minimum locking time for assets is 15 days, guaranteeing a 1x multiplier. After that, there is no lockup requirement and FPT-FNX can be transferred or removed at any time.
Once a choice is made, the locking period can only be increased but not decreased.
The reward multiplier decays as time moves forward. For example, assuming an investor locks FNX for 6 months, after 3 months, the reward multiplier decays from 6 to 5.