How staking $SERVER fuels governance through $BYTES generation and activity incentives
The staking mechanism in Server Protocol is designed to ensure sustainable participation, discourage passive accumulation, and align long-term incentives for contributors and voters. It introduces a programmable reward system that distributes $BYTES dynamically based on user activity and staking duration.
🔁 Base emission rate
When users stake $SERVER, they begin to earn $BYTES over time. The emission rate is controlled by the smart contract and follows this formula:
Emission rate per second per staked token:100 internal units
Decimals: $BYTES has 9 decimals, so:
100 units = 0.0000001 $BYTES / second
📊 Real example
Staked $SERVER
$BYTES per second
$BYTES per day (approx.)
1
0.0000001
0.00864
1,000
0.0001
8.64
10,000
0.001
86.4
100,000
0.01
864
This is the maximum emission rate without penalties — for fully active users.
📉 Dynamic emission decay
To prevent passive accumulation and promote meaningful engagement, Server Protocol implements a decay system that gradually reduces the amount of $BYTES claimable by users who do not spend them through votes or proposals.
The decay starts after 1 month of inactivity (no $BYTES use), and reduces rewards weekly:
Inactivity (weeks)
Emission multiplier
0–4 weeks
100% (no penalty)
5 weeks
90%
6 weeks
80%
7 weeks
70%
8 weeks
60%
9 weeks
45%
10 weeks
30%
11 weeks
15%
12+ weeks
0% (no emission)
✅ Emissions can be restored to full once the user participates again in voting or submitting proposals.
🎯 Why this matters
This system:
Encourages active involvement rather than passive yield farming.
Prevents large token holders ("whales") from accumulating governance power without contributing.
Aligns rewards with real engagement and on-chain impact.
🔐 Claiming $BYTES
Users must call the claim_bytes function manually to receive their accumulated rewards.
This claim checks both the amount of staked $SERVER and the user’s latest usage activity.
All rewards are minted directly to the user’s $BYTES token account.
