# Staking

Staking rewards, possibility of slashing, or increasing/decreasing a node rating, are a set of incentives that encourage token holders and validators to secure the OneFinity Network. In return for security, the validators can increase their relative share of token holdings in the network.

 We believe that staking rewards do not exist to provide an income stream per se to the token holders. In fact, the economic rationale for staking is not to receive a reward (“yield”), but instead to clearly assert to the validators that staking increases their relative interest (through the amount of ONE owned) in the network, and also contributes to significant token appreciation.

 With this in mind, it is better to look at the inflation rate as a token holder dilution rate instead. As such, staking is the best way to grow your token holdings and interest in the OneFinity network.

 Here are how rewards will be paid in **OneFinity**:

 There will be a minimum guaranteed reward amount per year. The minimum guaranteed reward amount will come from fees and token inflation. The maximum inflation rate per year is based on if the fees are 0.

 The guaranteed rewards per year are calculated based on the following formulas:

| Year   | Calculation         | \*Rewards based on a total supply of 25.5 million |
| ------ | ------------------- | ------------------------------------------------- |
| Year 1 | Total Supply x 5.0% | 1,275,000                                         |
| Year 2 | Total Supply x 4.5% | 1,204,875                                         |
| Year 3 | Total Supply x 4.0% | 1,119,195                                         |
| Year 4 | Total Supply x 3.5% | 1,018,467                                         |
| Year 5 | Total Supply x 3.0% | 903,526                                           |
| Year 6 | Total Supply x 2.5% | 775,527                                           |
| Year 7 | Total Supply x 2.0% | 635,932                                           |
| Year 8 | Total Supply x 1.5% | 486,488                                           |
| Total  |                     | 7,419,010                                         |

*\*These rewards are used as an example. As the token is deflationary the actual rewards will adjust based on the current total supply.*

 The guaranteed rewards will be distributed between all the active validators. Therefore, less validators means more rewards per validator.

 There will be a maximum total of 7,419,010 tokens minted to provide the rewards for staking based on the total supply being 25,500,000.


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