Reward Distribution and APY calculation

This is just a demo of the Reward Distribution and Apy Calculation official numbers will be announced soon. (This will be updated)

Term:

• Weighted Lock-up Days (WTLD): This metric determines the distribution of rewards. It's calculated by multiplying the number of players in a tier by their respective lock-up days.

• Total Pool Size: The total amount of $palm allocated for staking rewards.

• Daily Reward per WTLD: This value is calculated by dividing the Total Pool Size by the Total WTLD for the entire pool. It's used to determine the daily rewards for each tier.

Formulas: ​$\text{Total WTLD for Pool} = \sum_{i=1}^{n} \text{WTLD per Tier}_i ​$

$\text{Total WTLD for Pool} = \sum_{\text{all tiers}} \text{WTLD per Tier}$

$\text{Daily Reward per WTLD} = \frac{\text{Total Pool Size}}{\text{Total WTLD for Pool}}$

$\text{Daily Tier Rewards} = \text{Daily Reward per WTLD} \times \text{WTLD of the Tier}$

$\text{Daily Player Ratio} = \frac{\text{Daily Tier Rewards}}{\text{Number of Players in the Tier}}$

Calculation:

Tier	Lock-up Period	WTLD	Daily Tier Rewards	Daily Player Ratios	Yearly Tier Rewards
1	1 Week (7 days)	6,216	307.63 $palm	0.35$palm/player/day	332,240.4 $palm
2	1 Month (30 days)	26,640	1,315.98 $palm	1.48 $palm/player/day	1,440,998.1 $palm
3	3 Months (90 days)	80,640	4,002.26 $palm	4.51 $palm/player/day	4,382,474.7 $palm
4	6 Months (180 days)	159,840	7,959.46 $palm	8.9 $palm/player/day	8,715,608.7 $palm
5	1 Year (365 days)	324,480	16,055.50 $palm	18.08 $palm/player/day	17,580,772.5

Transparency and Fairness:

• Longer lock-up periods result in higher daily tier rewards and daily player ratios.

• The Palm Island team may adjust APYs or tier requirements based on market conditions and community feedback.

• Palm Island is committed to transparent and fair reward distribution. The formulas and calculations are clearly presented to ensure all participants understand the mechanics of the staking system.