5.3 Staking and Liquidity Mining Programs

Staking and liquidity mining are two foundational mechanisms in RAC’s token economy. They contribute to network security, market liquidity, and user engagement, forming the backbone of RAC’s value accrual system. RAC leverages a dual incentive model to reward users for participating in consensus, trading, and ecosystem growth—supporting a self-sustaining, decentralized economy.

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RAC Staking Mechanism

Users can stake their RAC Tokens on-chain to earn platform rewards, gain governance power, and access long-term incentives. The staking mechanism serves two key purposes:

• Ensures consensus stability (e.g., PoS/BFT validator weight)

• Rewards long-term holders, enhancing community loyalty

Rewards are distributed from the staking reward pool using the following formula:

Rewarduser=StakeuserStaketotal×PoolrewardReward_{user} = \frac{Stake_{user}}{Stake_{total}} \times Pool_{reward}

Where:

• $Stake_{user}$: User’s staked amount

• $Stake_{total}$: Total staked across the system

• $Pool_{reward}$: Periodic reward pool (sourced from fees, incentive reserves, etc.)

RAC also includes staking duration-based weighting, where longer lockups yield higher reward multipliers, encouraging long-term holding behavior.

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RAC Liquidity Mining Strategy

To deepen RAC’s liquidity across the DeFi ecosystem, the platform has launched a dedicated liquidity mining program. Users can pair RAC with stablecoins or major assets (e.g., ETH, USDC) and provide liquidity on supported DEXs (e.g., Uniswap, Balancer, PancakeSwap).

Liquidity Providers (LPs) receive a share of trading fees plus RAC mining rewards:

LP_Reward=TVLpairTVLtotal×LP_PoolrewardLP\_Reward = \frac{TVL_{pair}}{TVL_{total}} \times LP\_Pool_{reward}

Where:

• $TVL_{pair}$: Locked value in the specific trading pair

• $TVL_{total}$: Total platform-wide liquidity

• $LP_Pool_{reward}$: Liquidity mining reward pool for the current cycle

A dynamic weighting model ensures rewards are distributed proportionally across pairs, preventing single-asset dominance and minimizing price manipulation risk.

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Integrated Dual Incentives: Staking + LP

RAC introduces a compound reward mechanism integrating staking and liquidity mining:

• Users can stake LP tokens for layered rewards, creating a compounding effect

• Stakers gain enhanced governance rights

• Certain privileges (e.g., nominating RWA whitelist assets) are exclusive to stakers

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Incentive Sustainability Design

To ensure the long-term economic sustainability of the reward system, RAC enforces:

• Dynamic reward pool scaling: Adjusted based on transaction volume, TVL, and inflation rates

• Staking thresholds: Minimum and maximum caps to prevent airdrop exploitation

• Granular reward schedules: Daily, per-block, or weekly distributions based on use case