10 Staking Mechanism

Staking Overview

InteractAI's staking system rewards long-term token holders with attractive APY while reducing circulating supply and aligning incentives.

---

Staking Tiers

Duration-Based APY

Duration	APY	Min Stake	Early Withdrawal Penalty
30 days	5%	100 IAI	20%
90 days	15%	100 IAI	20%
180 days	25%	100 IAI	20%
365 days	40%	100 IAI	20%

Value Proposition

• 30-Day Tier: Flexible, low commitment, steady returns

• 90-Day Tier: Balanced risk/reward, quarterly planning

• 180-Day Tier: Higher returns, medium-term commitment

• 365-Day Tier: Maximum APY, long-term alignment

---

Staking Process

How to Stake

1

Select Pool

• Choose staking duration

• View APY and terms

• Check minimum stake

2

Approve Tokens

• Approve IAI spending

• One-time approval per pool

• Secure transaction

3

Stake Tokens

• Enter stake amount

• Confirm transaction

• Tokens locked immediately

4

Earn Rewards

• Rewards accrue automatically

• View in dashboard

• Compound or withdraw (future)

Withdrawal Process

1

After Lock Period

• Withdraw principal + rewards

• Zero penalty

• Instant transaction

• Tokens to wallet

2

Early Withdrawal

• 20% penalty on rewards

• Principal returned in full

• Penalty to treasury

• Discouraged but available

---

Reward Calculation

APY Formula

• Time-based accrual

• Proportional to stake amount

• Calculated per block

• Compounding ready (future)

Example (100,000 IAI staked for 365 days at 40% APY):

• Daily reward: ~109.6 IAI

• Monthly reward: ~3,333 IAI

• Annual reward: 40,000 IAI

• Total after 1 year: 140,000 IAI

Reward Distribution

Funding Source:

• Platform revenue allocation

• Token emission schedule

• Decreasing over time

• Transition to revenue-sharing

Sustainability:

• 100M IAI allocated over 5 years

  • Year 1: 30M (30%)

  • Year 2: 25M (25%)

  • Year 3: 20M (20%)

  • Year 4: 15M (15%)

  • Year 5: 10M (10%)

---

Economic Impact

Supply Reduction

Target: 30-40% of total supply staked

Impact:

• 300-400M IAI locked

• Reduced circulating supply

• Increased scarcity

• Price support

Long-Term Alignment

Incentives:

• Higher APY for longer commitment

• Penalty for early exit

• Rewards for patience

• Platform success alignment

Result: Token holders become long-term stakeholders

---

Staking Dashboard

User Interface

Overview:

• Total staked amount

• Active stakes by duration

• Pending rewards

• Claimed rewards

• Historical performance

Actions:

• Stake more tokens

• View stake details

• Claim rewards (when available)

• Emergency withdraw (with penalty)

Analytics

Metrics:

• APY earned

• Days remaining

• Reward projections

• Portfolio value

• Performance vs. holding

---

Multi-Token Pools (Future)

Planned Enhancement

Stake IAI, Earn Multiple Tokens:

• IAI rewards (primary)

• Partner token rewards

• Stablecoin rewards

• NFT rewards

Business Value: Increased utility, partnership opportunities, diversified rewards

---

Security Features

Smart Contract Security

Protection:

• ReentrancyGuard

• Access control

• Validated inputs

• Emergency pause

Audits: Third-party security audit completed

User Protection

Safeguards:

• Minimum/maximum periods enforced

• Overflow protection

• Emergency withdrawal option

• Transparent calculations

---

Staking Economics

Platform Perspective

Benefits:

• Reduced sell pressure

• Long-term holder base

• Community alignment

• Token value support

Costs:

• Reward token allocation

• Smart contract gas

• Infrastructure

• Support

Net Impact: Positive (stronger tokenomics, loyal community)

User Perspective

Benefits:

• Passive income (5-40% APY)

• No active management

• Secure smart contract

• Transparent returns

Risks:

• Lock-up period

• Token price volatility

• Smart contract risk

• Early withdrawal penalty

Risk/Reward: Favorable for long-term believers

---

Comparison with Competitors

• Traditional Finance:

  • Savings accounts: 0.5-2% APY

  • CDs: 3-5% APY

  • InteractAI: 5-40% APY

• DeFi Platforms:

  • High-risk protocols: 50-200% APY (unsustainable)

  • Stable protocols: 5-15% APY

  • InteractAI: 5-40% APY (sustainable)

Competitive Advantage: Higher than TradFi, sustainable unlike high-risk DeFi

---