Variable Definitions

• R(x): Normalized staking reward

• x: Token value (market-based or index-based)

• k: Sensitivity coefficient controlling adjustment speed

• x₀: Inflection point where reward reduction accelerates

Reward Dynamics by Phase

Early Phase (x < x₀)

• Token value remains relatively low

• Rewards stay high with slow change

• Strong incentives for early adopters and validators

R(x)≈1

Growth Phase (x ≈ x₀)

• Token value enters rapid growth

• Rewards decrease at the fastest rate

• Emission discipline is introduced gradually

Staking Reward Models

KRONA implements a dual-control staking reward framework designed to maximize early network participation while ensuring long-term economic sustainability.
The model combines time-based exponential decay with value-based inverted logistic adjustment, creating a predictable and disciplined emission structure.

1.Exponential Decay Staking Reward Model

KRONA staking rewards follow an exponential decay model to provide strong incentives during the early phase of the network while preventing long-term inflation.

Reward Function

Variable Definitions

• R(t): Staking reward at time t

• R₀: Initial staking reward at t = 0

• k: Decay rate (reward reduction coefficient)

• t: Time elapsed (measured in months)

Model Rationale

Early Incentive Alignment
High initial rewards encourage early participation by validators and stakers, accelerating network security and liquidity formation.

Controlled Token Emission
Rewards decline gradually over time, reducing inflationary pressure on total token supply.

Long-Term Sustainability
The decay mechanism ensures that staking rewards remain economically viable without excessive dilution.

Infrastructure-Oriented Design
This approach aligns KRONA with infrastructure-backed blockchain economics rather than speculative emission models.

Investor Perspective

From an investor standpoint, the exponential decay model provides:

• Predictable reward reduction

• Strong supply discipline

• Improved long-term token value stability

This structure positions KRONA as a cash-flow-oriented utility token rather than a purely speculative asset.

2. Inverted Logistic Reward Model (Value-Based)

The inverted logistic reward model adjusts staking rewards dynamically based on token value rather than time alone.

As token value increases, staking rewards decrease smoothly and asymptotically, ensuring long-term economic stability without abrupt emission changes.

Reward Function

Example Reward Distribution (Selected Periods)

4. Single Staker Illustration (1% Participation)

Assuming a participant controls 1% of total staked tokens:

Month 1

• Monthly reward: ~1,880 KRONA

• Daily average: ~63 KRONA

Month 12

• Monthly reward: ~990 KRONA

• Daily average: ~33 KRONA

Month 18+

• Monthly rewards decline sharply

• Network transitions toward a low-inflation, maturity phase

Maturity Phase (x > x₀)

• Token value stabilizes at higher levels

• Rewards approach a lower bound asymptotically

• Long-term inflation is effectively controlled

R(x)→0

Economic Rationale

Predictable Emission Control
The inverted logistic function avoids sudden reward shocks by enforcing smooth, continuous adjustment.

Value-Aligned Incentives
Staking rewards are tied to ecosystem growth and token value rather than time alone.

Inflation Resistance
As the ecosystem matures, reward emissions naturally decline, minimizing long-term dilution risk.

3. Staking Reward Distribution Example (Projection)

Simulation Assumptions

• Monthly token supply: 200,000 KRONA

• Distribution period: 50 months

• Total distributed supply: 10,000,000 KRONA

• Token price growth: +10% per month (compound)

• Reward model:

  • Time-based exponential decay

  • Value-based inverted logistic adjustment

Monthly Reward Formula

Monthly Staking Reward=Monthly Supply×R(t)×R(x)