Staking and Value Capture

🏦 Staking and Value Capture

📈 Staking Economy

Users can stake $Butterfly to earn yield and governance weight. The staking model operates by Epoch (monthly).

Reward decay design: Data shows staking rewards are Flat Distribution rather than exponential decay.

• Month 1-12: High-yield launch period

• Month 13-48: Continued stable period This design provides predictable cash flow for long-term holders.

APR calculation formula: User $u$ annual percentage rate (APR) is dynamic:

$$\mathit{APR}_{epoch} = \frac{\mathit{Total\_Reward}_{epoch}}{\mathit{Total\_Staked}_{epoch}} \times \frac{365}{\mathit{Days}_{epoch}}$$

If the network staking rate is low (for example only 10%), the APR will be extremely high, thereby attracting more token locks and reducing the circulating supply.

🔥 Token Utility and Burn

1. Bounty Hunter Mode: Users stake ICM (internal settlement token) to enable relay node functions and earn "express fees."

2. Message Boosting: Users pay tokens to give their messages higher transmission priority and wider coverage radius (for emergencies or commercial promotion).

3. Social Tips: Near-field tipping with no Gas fees.

Burn Mechanism: To protect token value, all network service fees (such as Message Boosting fees) 20% will be automatically burned, permanently removed from circulation, creating deflationary pressure.