Staking

The staking system allows users to stake OIL tokens and earn FOGO rewards from protocol revenue. Stakers earn rewards from two sources:

• 2% of round winnings (from block mining)
• 3% of auction prices (from auction mining)

All rewards are distributed proportionally based on your stake score.

​

Lock-Based Multipliers

Your staking rewards are determined by a score system: Score = Balance × Multiplier The multiplier depends on your lock duration. Values between the table points are linearly interpolated. Key Insight: A smaller balance with a longer lock can outperform a larger balance with no lock. Example:

• 10,000 OIL, no lock = 10,000 score
• 1,000 OIL, 365-day lock = 10,500 score (higher despite lower balance!)

​

How It Works

Rewards are distributed proportionally based on your stake score. When you deposit, withdraw, or claim, your rewards are automatically updated based on the cumulative rewards factor.

• Deposit: Add OIL to your stake. Lock period can be set on first deposit or when adding to an unlocked stake.
• Withdraw: Remove OIL from your stake. Early withdrawals from locked stakes are allowed but incur a penalty based on lock duration. The penalty is burned (deflationary).
• Claim: Claim accumulated FOGO rewards.

​

Reward Source

FOGO Rewards:

• Come from 2% of round winnings (block mining protocol revenue)
• Come from 3% of auction prices (auction mining protocol revenue)
• Distributed proportionally based on stake score
• Claimed as native FOGO
• Provides immediate utility (gas, trading, etc.)

​

Lock Behavior

• Lock is set on first deposit or when adding to unlocked stake
• Cannot change lock period after it’s set (for locked stakes)
• Early withdrawals are allowed but incur penalties (see penalty table below)
• Lock does NOT prevent deposits - you can always add more OIL
• Adding more OIL to a locked stake resets the lock timer
• Rewards accumulate regardless of lock status

​

Early Withdrawal Penalties

If you withdraw from a locked stake before the lock expires, a penalty is applied based on your lock duration. The penalty is calculated as a percentage of the withdrawn amount and is burned (deflationary). Note: The penalty uses the next higher tier (no interpolation). For example, a 15-day lock uses the 10% penalty tier (8-30 days).

​

Single Stake Per User

Each user can have one stake account (stake_id = 0). This simplifies the staking experience while still providing all the benefits of lock-based multipliers and reward accumulation.