Module 5.2｜Your sNX automatically increases over time!

When you stake 1 NX, you receive 1 staked sNX. Over time, you will also linearly earn additional sNX in the available state. This additional sNX grows at a rate of 1x your staked NX after one year, with a maximum total sNX of 2 sNX.

Simplified Explanation of sNX Growth and Revenue Share

Let's break it down in a simpler way:

At the Start:

• Imagine Bob stakes 100 NX tokens.

• He gets 100 sNX in return, which represents his stake in the platform.

After 1 Year:

• Bob's staked sNX stays at 100, but he earns an extra 100 sNX over time.

• Now, he has a total of 200 sNX.

Revenue Share

• The platform collects fees and shares a portion with stakers.

• The more sNX you have, the bigger your share of the fees.

Example:

• Let's say the platform has 1,000,000 sNX in total.

• It collects 10,000 USDC in fees over two weeks and shares 30% (3,000 USDC) with stakers.

At the Start:

• Bob's share of the revenue is:

$$\frac{200}{1,000,000} \times 3,000 \text{ USDC} = 0.6 \text{ USDC}$$

After 1 Year:

• Bob's share of the revenue is:

$$\frac{200}{1,000,000} \times 3,000 \text{ USDC} = 0.6 \text{ USDC}$$

Key Points:

1. sNX Growth: Over time, Bob's sNX doubles from 100 to 200.

2. Revenue Share Increase: Bob's share of the platform's revenue also doubles from 0.3 USDC to 0.6 USDC.

3. Proportional Share: The more sNX you hold, the more revenue you earn. It's like having more tickets in a lottery where the prize is the platform's revenue.

By staking NX and letting sNX grow, users can earn more rewards from the platform's success without doing anything extra.