StakeDrop Campaign: Comprehensive Guide

Router Protocol
6 min readJul 24, 2024

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Welcome to the StakeDrop campaign, an exciting reward campaign celebrating the launch of Router Chain’s mainnet!

We’re on a mission to bring chain abstraction to the complex and isolated world of web3. We want developers to be able to build amazing applications that work across any network, and for users to access the dApps seamlessly.

This campaign is your chance to shape the future of Web3 and earn extra rewards. Stake your $ROUTE tokens, earn great rewards, and be part of something big.

Participate now: https://hub.routerprotocol.com/stakedrop

Note: Please ensure you’ve migrated to the new ROUTE token, the native token of Router Chain. Users with old ROUTE tokens need to migrate and will then be able to stake their new ROUTE tokens. For detailed instructions, check out the guide here: Comprehensive ROUTE Migration, Bridging, and Staking Guide.

Note: All calculations and reward distributions mentioned in this guide are based on new $ROUTE token values. The conversion rate is 1 OLD $ROUTE = 33.33 New $ROUTE.

Note: Router Chain native staking rewards start from July 30, 2024, and the rewards of the StakeDrop campaign are additional on top of native staking rewards. After July 30, 2024 users will earn the native staking rewards and the StakeDrop rewards until the StakeDrop campaign ends.

Campaign Overview

StakeDrop campaign is our way to reward our ever-supporting community which has supported us for such a long time. The campaign is divided into two Reward-Packed Seasons: Season 0 and Season 1.

The points of the StakeDrop campaign are called DROPS. The final rewards are going to be decided on the basis of how many DROPS a user accumulates during both seasons.

Season 0 is a seven-day period designed to give you a fast start with high rewards. By staking your $ROUTE tokens during this period, you’ll start early accumulation of DROPS and secure a significant portion of the reward pool.

Season 1, spanning 83 days, offers a larger reward pool and more time to accumulate DROPS. This sustained staking period allows you to maximize your earnings and benefit from the compounding loyalty bonus.

We also have an additional layer of rewards–Airdrop Tokens from StakeEase and FolioX!

StakeEase and FolioX are Router’s ecosystem projects and have committed a percentage of their token supply to be distributed based on the DROP points.

Let’s now get into the details of the campaign -

Understanding the Seasons

The users who stake on Router Hub are eligible for earning Season 0 and Season 1 rewards. Please note that there is no additional step required from users to enter Season 0 or Season 1. Just delegating ROUTE tokens on Router Hub is sufficient to participate in StakeDrop seasons.

Season 0: (25 July — 1 August)

Season 0 is a quick, high-reward period lasting one week. Stake your $ROUTE tokens now and secure a significant portion of the reward pool right from the beginning.

By staking your $ROUTE tokens during this period, you’ll quickly accumulate DROPS and be eligible for a substantial portion of the 833,250 $ROUTE reward pool on top of the staking yield.

  • Duration: 7 days (25 July — 1 August)
  • Reward Pool: 833,250 $ROUTE (equivalent to 25,000 old $ROUTE) + Ecosystem Airdrops from StakeEase and FolioX
  • No Loyalty Bonus applied

Season 1: (2 August — 24 October)

Season 1 spans 83 days, allowing for sustained staking and the accumulation of a significant amount of DROPS. In this season, the rewards pool is proportional to the staked amount of $ROUTE along with the loyalty bonus.

The reward pool starts at 1,666,500 $ROUTE for every 33.33 million $ROUTE staked and increases with the amount staked. See the table for detailed information on how the reward pool increases with the staked tokens

Participants have the opportunity to earn more substantial rewards on top of the native chain staking yield. As mentioned earlier, our campaign has two key objectives

  • Duration: 83 days (2 August — 24 October)
  • Reward Pool: The Season 1 reward pool grows proportionally with the amount of $ROUTE staked, starting at 1,666,500 $ROUTE for every 33.33 million staked + Ecosystem Airdrops from StakeEase and FolioX

Understanding the Rewards

Stake $ROUTE to Earn DROPS

DROPS are the points used to calculate your share of the reward pool. For every $ROUTE staked, participants earn 1 DROP on 100 $ROUTE per day.

For example, staking 100 $ROUTE for 7 days will earn you 7 DROPS.

Loyalty Bonus: 2% compounding daily

If you do not withdraw your staked $ROUTE, your DROPS will increase by 2% every day, and this 2% bonus is compounded daily.

This means the longer you stake your $ROUTE tokens without withdrawing, the more DROPS you will accumulate exponentially with the compounding effect.

When compounding the 2% DROP every day, the DROPS earned each day are calculated based on the new total, which includes the previously accumulated DROPS. This creates an exponential growth effect.

Let’s calculate and visualize this for a user who stakes 100 $ROUTE for 83 days.

Initial Stake:

  • User stakes 100 $ROUTE tokens.

Daily Compound Increase:

  • Each day, the total DROPS increase by 2%.

Day 1:

  • Initial stake: 100 $ROUTE
  • Daily DROP (Seasonal): 1 DROP
  • Daily Compound Bonus: 2% of total DROPS (initially 0) = 0 DROPS
  • Total DROPS for Day 1: 1 (Seasonal) + 0 (Compound) = 1 DROP
  • Cumulative Total DROPS: 1 DROP

Day 2:

  • Previous total: 1 DROP
  • Daily DROP (Seasonal): 1 DROP
  • Daily Compound Bonus: 2% of 1 = 0.02 DROPS
  • Total DROPS for Day 2: 1 (Seasonal) + 0.02 (Compound) = 1.02 DROPS
  • Cumulative Total DROPS: 1 + 1.02 = 2.02 DROPS

Day 3:

  • Previous total: 2.02 DROPS (cumulative total from Day 2)
  • Daily DROP (Seasonal): 1 DROP
  • Daily Compound Bonus: 2% of 2.02 = 0.0404 DROPS
  • Total DROPS for Day 3: 1 (Seasonal) + 0.0404 (Compound) = 1.0404 DROPS
  • Cumulative Total DROPS: 2.02 + 1.0404 = 3.0604 DROPS

Day 4:

  • Previous total: 3.0604 DROPS (cumulative total from Day 3)
  • Daily DROP (Seasonal): 1 DROP
  • Daily Compound Bonus: 2% of 3.0604 = 0.061208 DROPS
  • Total DROPS for Day 4: 1 (Seasonal) + 0.061208 (Compound) = 1.061208 DROPS
  • Cumulative Total DROPS: 3.0604 + 1.061208 = 4.121608 DROPS

Check out the entire calculation for 83 days here (it shows the staking boost for a user who stakes 100 $ROUTE for 83 days) — https://docs.google.com/spreadsheets/d/1X1QydPDLP5uv6mCbDhgl9RQp8mK8wx7ZTWzTEZGTWJk/edit?gid=0#gid=0

Let’s calculate and plot this for 83 days.

Cumulative Total DROPS Over 83 Days With Compounding

Y DROPS by X Days

Chart showing the cumulative total DROPS over 83 days with daily compounding of the 2% loyalty bonus, starting from an initial stake of 100 $ROUTE

Important Note on Withdrawals:

If a user withdraws even one $ROUTE token from the 100 staked $ROUTE on any day during the 83-day bonus period:

  • The user will receive the compounded bonus for the days up to the withdrawal.
  • For the remaining staked tokens, the loyalty bonus will reset.
  • The bonus will start from Day 1 again for the remaining tokens.

Example: If a user withdraws on Day 30:

  • They will receive the compounded bonus for the first 29 days.
  • From Day 30 onwards, the bonus for the remaining staked tokens will reset and start from Day 1.

By keeping the $ROUTE tokens staked without withdrawals, users maximize their DROPS through the compounded loyalty bonus.

Ecosystem Rewards

Ecosystem rewards are additional tokens of our ecosystem projects–StakeEase and FolioX. Airdrop Rewards will be distributed based on the combined DROPS you accumulate across both Season 0 and Season 1.

  • Season 0 DROPS: Earned from 25 July — 1 August
  • Season 1 DROPS: Earned from 2 August — 24 October

At the end of both Seasons, the DROPS you earned in both seasons are combined to calculate your total DROPS.

Example:

  • User A earns 100 DROPS in Season 0.
  • User A earns 1,000 DROPS in Season 1.
  • Total DROPS for User A = 100 (Season 0) + 1,000 (Season 1) = 1,100 DROPS

The combined DROPS from both seasons determine your share of the ecosystem rewards pool.

By staking $ROUTE and maintaining your stake through both seasons, you maximize your total DROPS and, consequently, your share of the ecosystem rewards. Happy staking and enjoy the rewards!

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Router Protocol
Router Protocol

Written by Router Protocol

Router Protocol is a secure, composable, and modular framework for building interoperable applications. More at https://routerprotocol.com

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