Rewards

Of the Ethereum that is generated from Mining 39% is dedicated to Rewards. 20% for Stakers split into 2 Reward Pools and 19% for Miners into 2 Pools.

Staking Reward Distribution

• Primary Distribution: Ethereum to Shaolin Token Stakers.

• Reward Intervals: Rewards are distributed at intervals on every 8 & 16 days.

• Distribution Breakdown:

  • Every 8th Day: (10% of Staking Rewards) of the total accumulated ETH.

  • Every 16th Day: (10% of Staking Reward) of the total accumulated ETH.

Shaolin Masters Reward

• Every 28 Days the $Shaolin Masters Reward is paid out in $WBTC. Of the Ethereum that comes in every 28 days 15% is converted to $WBTC and for those who have created a minimum of a day 1 Max Miner(125,000 $SHAO Tokens) during the 28 Day cycle period you are eligible for the Reward.

For Example you can create 1, 2, or 3 miners that total the 125k tokens or even more miners, as long as it meets the 125k token threshold.

If your mining exceeds the 125k token threshold, your Reward % of the Pool increases for the $WBTC for that 28 day period.

Keep in mind, mining only lasts for 88 days. Therefore, there will only be 3 $WBTC payouts, one every 28 days.

WBTC Feeder

On the Shaolin dApp the 15% of $ETH that funds the $WBTC 28 day pool is funded by the $WBTC Feeder which is user callabe to feed the 28 day pool. Users can call this public function every 5 minutes if desired. However, the keep in mind the pool only pays out every 28 days.

Shaolin Lambo Reward

• The Shaolin Lambo Reward will be distributed on Day 88 to 5 random qualified participants via decentralized smart contract. The takers will receive 0.8% each of the 4% of Ethereum dedicated for this unique payout.

• To Qualify for the Shaolin Lambo Reward a User Must have Mined the equivalent of 3 - Day 1 Max Miners by Day 88 from the same wallet. This token amount to qualify does not include bonus tokens. Therefore, the total amount Mined by the User must be 375,000 SHAO Tokens.

Longer Staking Periods = More Rewards & S-Rank

Users who stake their SHAO tokens for longer periods will receive a larger percentage of the total rewards allocated to the 2 reward pools. This encourages longer-term staking and reduces circulating supply by locking up tokens for extended periods.

Optional Auto-Compounding Mechanism

Shaolin offers an optional auto-compounding feature where staked rewards are automatically reinvested into the users stake, growing the user's overall staking position. This creates a snowball effect where the longer someone stakes, the more their position grows, increasing future rewards. This is attractive to users looking for passive, long-term growth. However, tokens that are auto-compounded into an existing stake will not receive new S-Rank Bonuses, only new stakes can receive S-Rank Bonus. One of the primary goals of the Shaolin Protocol is to become deflationary. If the protocol were to provide additional bonuses for auto-compounding unneeded inflation will occur and dilution of the existing Staker class.

Further Details Regarding the Auto-Compounding Feature

It’s important to note that only SHAO tokens are staked. If a User decides to Auto-Compounded their ETH Rewards back into the Existing SHAO Stake the process is as follows:

• First, the Smart Contract takes the ETH Rewards and uses them to Buy SHAO from the SHAO/ETH liquidity pool on Uniswap V3.

• The newly purchased SHAO tokens are then added to your Existing SHAO Staking Position by the Smart Contract.

• This increases the number of SHAO tokens staked, allowing for a larger staking position that will yield even more Ethereum rewards in future payout cycles.

This process ensures that users can passively grow their staking position.

No Penalties for Late Claims

Unlike many DeFi protocols, Shaolin does not penalize users for claiming rewards late. This feature ensures flexibility and fairness for all participants while still incentivizing longer staking periods.