Staking Overview

Staking is the economic mechanism that powers the NØNOS network. Node operators stake NOX tokens to demonstrate commitment, and in return earn rewards proportional to their contribution.

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How Staking Works

┌─────────────────────────────────────────────────────────────────────┐
│                        STAKING FLOW                                 │
└─────────────────────────────────────────────────────────────────────┘

    ┌─────────────┐         ┌─────────────┐         ┌─────────────┐
    │   ACQUIRE   │────────►│    STAKE    │────────►│    EARN     │
    │  NOX TOKENS │         │  ON-CHAIN   │         │   REWARDS   │
    └─────────────┘         └─────────────┘         └─────────────┘
          │                       │                       │
          ▼                       ▼                       ▼
      Buy on DEX.            Lock in Contract       Quality-Based
    or Earn as Rewards        Select Tier            Distribution

                                                        │
                                                        ▼
                                                  ┌─────────────┐
                                                  │    CLAIM    │
                                                  │   TO WALLET │
                                                  └─────────────┘

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Key Concepts

Stake

The amount of NOX tokens you lock in the staking contract:

• Minimum: 1,000 NOX (Bronze tier)

• Maximum: Unlimited

• Purpose: Demonstrates economic commitment

• Effect: Higher stake = higher potential rewards

Tier

Your staking tier determines your reward multiplier:

Tier	Minimum Stake	Multiplier	Benefits
Bronze	1,000 NOX	1.0x	Entry level, no lock
Silver	10,000 NOX	1.2x	Higher rewards
Gold	50,000 NOX	1.5x	Priority routing
Platinum	200,000 NOX	2.0x	Premium tier
Diamond	1,000,000 NOX	2.5x	Maximum rewards

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Quality Score

Your node's performance rating (0-100%):

Quality Score = (Uptime × 0.30) + (Success Rate × 0.35) +
                (Latency Score × 0.20) + (Reliability × 0.15)

Metric	Weight	Measurement
Uptime	30%	Online availability
Success Rate	35%	Requests completed
Latency Score	20%	Response speed
Reliability	15%	Consistency over time

Epoch

Reward calculation period:

• Duration: 7 days

• End: Rewards calculated and made claimable

• Metrics: Averaged over epoch duration

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Reward Calculation

Formula

Your Reward = Epoch Emission × Your Weight / Total Weight × Quality × Streak

Where:

Your Weight = √(Your Stake) × Tier Multiplier
Total Weight = Sum of all nodes' weights
Quality = Your quality score (0.0 - 1.0)
Streak = 1.0 + (consecutive_good_epochs × 0.05), max 1.25

Example Calculation

Scenario:

• Your stake: 50,000 NOX (Gold tier, 1.5x multiplier)

• Your quality: 95%

• Streak: 3 good epochs (+15%)

• Daily emission: 43,500 NOX

• Total network weight: 10,000 units

Calculation:

Your Weight = √50,000 × 1.5 = 223.6 × 1.5 = 335.4 units
Share = 335.4 / 10,000 = 3.354%
Base Reward = 43,500 × 0.03354 = 1,459 NOX
Quality Adjusted = 1,459 × 0.95 = 1,386 NOX
With Streak = 1,386 × 1.15 = 1,594 NOX

Daily Reward ≈ 1,594 NOX

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Anti-Whale Protection

The square-root weighting prevents large stakers from dominating:

┌─────────────────────────────────────────────────────────────────────┐
│                    ANTI-WHALE MECHANISM                             │
└─────────────────────────────────────────────────────────────────────┘

Standard Linear Rewards:
  Stake 10x more → Earn 10x more

NONOS Square-Root Rewards:
  Stake 10x more → Earn ~3.16x more (√10)

Example Impact:
┌────────────────┬────────────┬────────────┬────────────────────────┐
│ Staker Type    │ Stake      │ Linear     │ NONOS (√ weighted)     │
├────────────────┼────────────┼────────────┼────────────────────────┤
│ Small (×100)   │ 10,000 ea  │ 10 ea      │ 31.6 ea (316 total)    │
│ Whale (×1)     │ 1,000,000  │ 1,000      │ 1,000 (1,000 total)    │
├────────────────┼────────────┼────────────┼────────────────────────┤
│ Total Stake    │ 2,000,000  │ Equal      │ Small stakers win!     │
│ Distribution   │            │            │ 316 vs 1,000           │
└────────────────┴────────────┴────────────┴────────────────────────┘

Result: 100 small stakers collectively earn MORE than 1 whale

Streak Bonus

Consecutive good epochs (quality ≥ 80%) earn bonus rewards:

Streak	Bonus
0 epochs	0%
1 epoch	+5%
2 epochs	+10%
3 epochs	+15%
4 epochs	+20%
5+ epochs	+25% (max)

Note: Quality below 80% resets your streak to 0.

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Staking Operations

Deposit

# Approve tokens first (happens automatically with CLI)
nonos stake deposit 10000

# Check status
nonos stake status

Withdraw

# Withdraw partial stake
nonos stake withdraw 5000

# Withdraw all
nonos stake withdraw --all

Note: Withdrawal may have a cooldown period depending on tier.

Change Tier

# View available tiers
nonos stake tiers

# Upgrade tier (requires sufficient stake)
nonos stake tier gold

Claiming Rewards

Manual Claim

# Check pending rewards
nonos rewards status

# Claim to wallet
nonos rewards claim

Auto-Claim

# Enable auto-claim when pending reaches 100 NOX
nonos rewards auto --threshold 100

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Risk Considerations

Slashing (Future)

The protocol may implement slashing for severe misbehavior:

Offense	Potential Penalty
Extended downtime (>72h)	Up to 5% of stake
Malicious behavior	Up to 50% of stake
Protocol attacks	Full stake

Current Status: Slashing is not implemented in v1 but the contract is upgradeable.

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Market Risk

• NOX token price may fluctuate

• Rewards are in NOX, subject to market conditions

• Consider your risk tolerance before staking

Operational Risk

• Node downtime reduces rewards

• Poor quality score reduces rewards

• Hardware failures affect earnings

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Getting Started

NOX Token

Learn about the token

Staking Tiers

Detailed tier benefits

Reward Mechanics

Deep dive into rewards

Run a Node

Start earning today