$MCRT Staking FAQs
More than 233 million $MCRT tokens are locked in MagicCraft staking protocol. It’s more than one million dollars worth. We, in MagicCraft team, think it’s a great achievement, since staking was launched just a couple of weeks ago.
But what does it all mean? What are those TVL, APY, NFT points, bonuses about? And how can anyone benefit from MagicCraft staking?
Today, we are going to answer the most frequently asked questions about MagicCraft staking app. We’ll try to explain everything in the simplest manner.
Are you ready? Let’s go!
What is staking?
Basically, staking (locking) is a way of earning rewards while holding your digital assets. It’s like depositing and locking your funds into a bank account. A bank uses your money and pays you interest. In the same way, a project uses your tokens, for liquidity, loans or other purposes, and you are paid interests.
More detailed information about staking can be found here.
If you stake MagicCraft tokens, you will also obtain voting rights in our DAO model that will be implemented on later stages of development.
What is APY?
APY stands for Annual Percentage Yield. This is the real rate of return earned on an investment, taking into account the effect of compounding interest. Unlike simple interest (APR), compounding interest is calculated periodically and the amount is immediately added to the balance. With each period going forward, the account balance gets a little bigger, so the interest paid on the balance gets bigger as well.
In the language of investors, if you invested $100 dollars at a simple interest rate of 8% per annum, at the end of the year you would get $108. But with a compound interest, assuming that interest is accrued twice a year, you would get 100 x (1+4%) = $104 for the first six months, and after the next six months 104 x (1+4%) = $108.16.
How is APY calculated?
Concerning MagicCraft the following formula is applied:
APY = rewardRate * 365 * 24 * 3600 / totalTokensStaked * 100%
rewardRate is the number that shows how many rewards are generated by second.
totalTokensStaked is tokens staked for $MCRT reward options only. It doesn’t include $MCRT tokens for NFT point rewards.
What is TVL?
TVL stands for Total Value Locked. It represents the number of assets that are currently being staked in a specific protocol. In our case this is MagicCraft staking protocol. So, this is the number of $MCRT tokens which are being staked right now. Multiplying the number of tokens by the current token price, you can get the TVL expressed in US dollars.
How TVL is calculated?
In our case, we have $MCRT reward pool and NFT reward pool. So, we have to add both to get Total Value Locked. The formula is:
TVL = totalTokensStaked + pTotalTokensStaked
pTotalTokensStaked is $MCRT tokens staked for NFT point rewards
What benefits will I get from staking $MCRT?
First, you will get rewards for staking, in the form of $MCRT tokens or in the form of in-game NFTs. Second, $MCRT functions as a governance token. By staking, you can participate in the development of the blockchain game, voting on features and thus have direct influence on the way the project is heading.
What are utilities of the staked tokens?
$MCRT is the main asset in MagicCraft ecosystem. It can be utilized as currency on the MagicCraft NFT marketplace and for in-game purchases or contests organized by the MagicCraft team.
How many $MCRT tokens did MagicCraft reserve for staking?
According to MagicCraft tokenomics, there are 1.2 billions of $MCRT reserved for staking. Detailed information about the tokenomics you can find in our WhitePaper.
I noticed that APY percentage is changing. Why?
APY percentage depends on how many people are staking and how many tokens are locked in the staking pool. When these numbers increase it usually leads to lower APY.
In simple words, let’s assume you are the first and the only one who sent tokens to the staking pool. You will get all rewards provided by the project. But after the other person adds the same amount into the staking pool, you will share the rewards. When the next person joins, the rewards are shared between three persons. And so on. The more tokens are in the staking pool the less is the reward per token.
If APY changes with time, will my reward be affected?
Yes. Changes in APY rate affect your reward immediately after such changes take place.
Is it safe to keep tokens in staking?
Absolutely. Your tokens are kept in the staking pool. After the staking period is over you get back your staked amount plus rewards. But it’s up to you to decide if you want to stake your $MCRT tokens.
The bonus percentage has changed. Will it affect my bonus rewards?
No worries. Your bonus is not affected, and your reward is calculated according to the bonus percentage that was shown at the moment you sent your $MCRT to staking. Updated bonus percentage is applied only for new stakers.
In the staking app, I can see my current amount of reward. Does it include the bonus or it is only APY reward?
It includes both basic rewards plus bonus rewards.
Do I pay any fees when staking and claiming tokens?
Yes. You pay fees for signing your transactions in the Binance Smart Chain when staking and claiming rewards. BSC is known for extremely low fees. So, the amount you pay is very small.
How is the bonus amount calculated?
The bonus is calculated from the number of tokens received as a reward. For example, if the 1-year period implies a 90% bonus, 10,000 $MCRT tokens were sent to staking and 4800 tokens were rewarded during this period, then the 90% bonus means that an additional 4320 $MCRT tokens will be credited at the end of the staking period.
Why there is 0% bonus for 30 days staking?
It’s the team’s strategy, as we hope users stake longer to get more bonus tokens. When you use 30 days duration, you get no bonus, but of course you are still eligible for base reward.
Is there a min or max cap for staking amount?
No. You can stake any amount you want.
Will I receive my tokens and reward automatically after staking period is over?
No. You have to claim your tokens manually. Connect your wallet and use the Claim Token Rewards button to claim your tokens.
Can I withdraw my staked $MCRT at any time?
No. You can only withdraw your tokens after the staking period you decided to stake (lock) for is over.
If I want to stake more in my current staking, can I add more to the pool?
Not to your current pool. By adding more tokens to the staking app you create a new pool with new start and end dates of the staking period, and with a new bonus percentage if it was updated since your previous staking.
How can I follow my staking period?
You can use our staking app. There is an “Unlocked on” column in the MCRT table. You can find the end date of your staking period. If you staked several times, you’ll find the end date for each of your staking amounts.
How does the NFT staking option work?
Here by staking $MCRT you receive not $MCRT but in-game NFTs as a reward. They can be items, characters or lands. You get NFT points during staking. After the staking period is over you can get your 1 NFT by burning 1 NFT point. Pay attention that there is a minimum amount of $MCRT required to be eligible for NFT staking.
Token amount required for Character NFT reward is 160,000 but I put 320,000 into the staking. Will I receive 2 Character NFTs?
If you put 320 000 $MCRT instead of 160 000 $MCRT you will get one NFT only. But you can divide this amount into two parts (160 000 and 160 000). In this way you will have two staking amounts and will get two NFTs accordingly.
Will my NFT that I get as a reward be tradable?
Yes. They are in-game NFTs and you can use them to level up your gaming experience. You also may trade your NFTs on the MagicCraft Marketplace as you are a true owner of your assets and can dispose of them at your discretion.
Where can I get detailed instructions on how to stake?
You can find a Step-By-Step Guide in our Medium article. It includes all related tutorials and links to video instructions.
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