NFT/SFT Reward System

Reward System Explained.

Midas Blockchain rewards introduce a unique approach to validators and incentives, setting them apart from conventional structures. During the Seed Phase, minting yields either Full Stars (NFTs) or Star Fragments (SFTs), each associated with a specific Midas Power:

  • Golden Star NFT: 100,000 Midas Power

  • Silver Star NFT: 10,000 Midas Power

  • Bronze Star NFT: 1,000 Midas Power

  • Golden Star Fragment SFT: 100 Midas Power

  • Silver Star Fragment SFT: 10 Midas Power

  • Bronze Star Fragment SFT: 1 Midas Power

These assets can be staked either in a staking agency on the sovereign chain or in the Star VAULT™. The only reason not to stake in an agency would be if no available spots are found.

Staking Midas Stars (NFTs and SFTs) within an agency automatically qualifies them for participation as a Validator for that agency, making them eligible for the 1st Reward Type, the Primary Reward Type.

Primary Midas Reward

All operational Validators qualify qualify for the Primary Midas Reward

This reward comprises 20% of the Daily OUROBOROS Emission, distributed daily to agencies based on the number of active Validators. For instance, if an agency runs 5 validators with a total Midas Power of 107,321, the Primary Midas Reward is shared among participants that have contributed said Midas Power. However, the extra 7,231 Midas Power acts as a top-up, contributing rewards without actively generating them, slightly reducing the APR for all others participants.

Primary Reward is distributed in liquid OURO. Staking Agency Fees applies to it.

Secondary Midas Reward

If one of the Nodes operated by the Staking Agency is elected to validate for the current epoch, it qualifies for the Secondary Midas Reward.

This reward comprises 69% of the GAS fees that have cumulated for the current Epoch. The Secondary Midas Reward is distributed only among the 20 to 30 elected validators that are elected to be validating for the epoch, in contrast to the 1st reward.

Secondary Reward is distributed in OURO / Auryn / Elite-Auryn based on the quality of the NFTs/SFTs. Staking Agency Fees applies to it.

Tertiary Midas Reward

The Tertiary Midas Reward signifies the execution of the Precious Metals Injection, which occurs whenever Precious Metals are allocated as rewards within the Ecosystem. For instance, if Demiourgos.Holdings™ acquires 10 KG of Gold as rewards for the season, 1 KG is automatically injected to all NFT/SFT Owners.

This injection is applicable to all NFTs/SFTs staked in a staking agency and those present in the Star VAULT™. However, NFTs/SFTs held in wallets or listed for sale in marketplaces do not qualify for this reward.

The distribution of the Tertiary Reward takes place in GSC / SSC, and Staking Agency Fees do not apply to it.

Quaternary Midas Reward

The Quaternary Midas Reward represents HALF of the rewards generated by Midas.Blockchain™ through its franchising efforts, with the other HALF directed to the Coding.Division POT™ (details available here).

Midas.Blockchain is positioned to claim 25% of the profits generated by the franchisee, along with occasional initial fees (determined on a case-by-case basis).

These rewards are distributed in the tokens generated by the franchising rewards, and Staking Agency Fees do not apply to this category.

Company NFTs/SFTs

The company has strategically positioned itself to secure a 10% ownership stake in all available NFTs/SFTs. This setup enables the company to potentially operate up to 150 Validators, constituting 10% of the total 1500 validators.

However, to ensure fairness within the system, the company, despite having the capacity to operate with 150 validators, will only actively earn rewards based on a fraction that corresponds to the 9th part of the sold Validators. For instance, if NFTs/SFTs with a value of 1,980,945 Midas Power are sold, the company's eligibility is capped at earning rewards for 220,105 Midas Power worth of SFTs. Any remaining NFTs/SFTs owned by the company will be securely stored in the Private PeerMe™ Company Vault and excluded from all types of rewards.

In exceptional circumstances, the company reserves the option to deploy Blank Validators. These are Validators operated without associated NFTs/SFTs and operate strictly at a deficit, serving solely for validation purposes. Blank Validators do not yield any rewards, and if elected in an epoch, they won't earn Secondary Midas Rewards (Gas fees). Consequently, in any validating epoch, at least one non-Blank Validator (created through normal means) must be elected. If a validating epoch features a single non-Blank Validator (Normal Validator) and the rest are Blank Validators, only the non-Blank Validator will earn the Midas Secondary Reward (Gas fees) for that Epoch.

Bonus Nodes for Partners

Within our portfolio of 150 Validators, 30 have been specifically selected for our partners participating in the Seed Round. Here's the breakdown:

Taking X-Launcher as an example, they plan to sell 4 Validators through a structured SFT Collection, governing associated rewards. Two Validators will be acquired through standard eligible minting tokens from their community, while the remaining 2 will be obtained by offering SFTs from their Midas Validator Collection in exchange for their proprietary XLH token. Notably, these last 2 Validators cannot be minted with XLH tokens and will instead come from the Bonus Validators reserved for Partners. Any acquired XLH tokens may undergo a specific burning event.

It's important to clarify that these 30 Partner Validators don't count towards the company's maximum allowable Midas Power for rewards calculation. The company retains only 120 Validators after allocating 30 to partners. To collect rewards using all remaining 120 Validators, 1,080 Validators would need to be sold, representing a ninefold increase.

A comprehensive list of partners and their Bonus Validators, along with specific details, will be publicly disclosed before the Seed Round begins.

Management of Unsold and Future NFTs/SFTs

NFTs/SFTs that remain unsold from the Seed Round, along with those designated for sale in subsequent Rounds (Private and Public), are securely stored within the Private PeerMe™ Company Vault. Importantly, these assets are deliberately excluded from participation in any form of rewards. This strategic decision ensures that unsold and future NFTs/SFTs are managed separately, with a focus on maintaining transparency and integrity in the reward distribution system.

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