NodeK

NodeK 1.0 is a minting where our community can mint LYK by link LYK with phisical hardware and leveraging the minting power of their chosen plan as Minting Utility Token.

The ideology behind NodeK 1.0 is as simple as:

• Hardware + Linked Utility token = New tokens

Let’s understand how the above will be possible,

Our community has 2 options for earning rewards:

1. Auto Link Off- Gives regular rewards

2. Auto Link On- Optimizes rewards with the power of increase daily your token linked

Rewards calculation when Auto Link is Off

A) Step 1- Determining each user’s collateral and staking limit

"Linked LYK Value" calculation

The "Linked LYK Value" is calculated considering the number of tokens linked and the price of LYK token at the time of staking i.e. (Day 0 Token count * Day 0 staking price) + (Day 2 Token count * Day 2 staking price) + (Day N Token count * Day N staking price)

Staking Limit

The maximum number of tokens a user can stake depends on the chosen Machine and is limited by the available linked LYK relative to the current price of LYK tokens.

Therefore, Max Token User can stake = (Machine Link Limit - Total Collateral for the user) / Current LYK Price

2) Step 2 - Minting Calculation

The rewards related calculations will be performed daily at 00 UTC timestamp.

To calculate rewards first we need to understand the following factors:

• All time High (ATH) is the Max price LYK has reached from the day the user initiated first staking in the plan. It will be calculated at the user level from the date he enrolled for the plan.

• Percentage Fall from ATH i.e. (ATH - LYK Price) / ATH

• Decrease Level Price (DLP) is set to the current LYK price at the time of enrollment. If the LYK price decreases from its previous day’s value, the DLP is adjusted corresponding to the % fall in price from current ATH. When a decrease occurs, the LYK price is compared with the ATH price. Depending on how much the LYK price has dropped relative to the ATH, the DLP is increased by a specified percentage as defined in the below table.

INFLATION RULES
% Fall in the LYK Price	Decrease production	Increase DLP	Minting Boost for new machine active in the level
0%	0.00%	0.00%	0
5%	0.00%	0.00%	0
10%	5.00%	5.00%	0
15%	5.00%	5.00%	0
20%	10.00%	5.00%	Base + 0.01
25%	10.00%	5.00%	Base + 0.01
30%	15.00%	5.00%	Base + 0.02
35%	20.00%	5.00%	Base + 0.03
40%	25.00%	5.00%	Base + 0.04
45%	30.00%	5.00%	Base + 0.05
50%	35.00%	5.00%	Base + 0.06
55%	40.00%	5.00%	Base + 0.07
60%	45.00%	5.00%	Base + 0.08
65%	50.00%	5.00%	Base + 0.09
70%	55.00%	5.00%	Base + 0.1
75%	60.00%	5.00%	Base + 0.11
80%	65.00%	5.00%	Base + 0.12
85%	65.00%	5.00%	Base + 0.12
90%	65.00%	5.00%	Base + 0.12
95%	65.00%	5.00%	Base + 0.12

• Production decrease is calculated irrespective of the change in price of LYK

• Production Decrease when the LYK prices fall or remains unchanged:

Use the % fall from the ATH value to fetch the corresponding production decrease % from table defined above

• Production Decrease in token numbers when the LYK price increases:

Calculate the % fall from the DLP when the LYK price increases

% Fall from DLP = (DLP - LYK Price) / DLP

• Minting Power depends on the user's chosen Hardware and remains fixed once defined at the start of their participation.

When a new user joins or an existing user upgrades to a new plan, the

Minting power = minting power as per the chosen plan + Minting boost

• Minting Boost is common for all users and applicable to the overall NodeK program. At the launch of NodeK 2.0, the minting boost will be 0.00%. When the LYK price falls from previous day price, the % fall from ATH value is used to fetch the boost value from the table added in earlier section

After determining all the above values:

Minting distribution = Total Collateral Value * Minting Power * Production Reduction * 0.7

Rewards calculation when Auto Link is On

A) Step 1- Determining each user’s LYK Linked token and staking limit

The "Linked LYK Value" for Auto Link ON is calculated by including the rewards received in addition to the number of tokens staked and the price of LYK token at the time of staking i.e. Total "Linked LYK Value" = (Previous Day Collateral amount) + (Previous Day $ Rewards)

Each subsequent day, the rewards from the previous day are added to the "Linked LYK " amount.

Daily, the rewards are credited and then automatically relinked into the staked equivalent token at the prevailing LYK price for that day (Same LYK price which was used for calculating rewards).

B) Step 2 - Reward Calculation

ATH, Percentage Fall from ATH, DLP, Production decrease and Minting Power are calculated as per Auto link off logic

After determining all the above values:

Reward = Linked LYK Value * Minting Power * Production Reduction

Users who have opted for the Auto Compounding ON option cannot withdraw their rewards directly; instead, the rewards are compounded into the linked tokens.