# Staking Mechanism The Staking Mechanism in the iG3 - The Edge Network for Real-Time AI Interactions is fundamental to maintaining network security, stability, and integrity. By participating in staking, token holders contribute to the network’s operational efficiency and consensus, in return for rewards. This mechanism aligns the interests of participants with the overall health and performance of the iG3 ecosystem. ## How staking works in the iG3 Ecosystem (at TGE) The staking process involves committing your TOPS tokens to a smart contract tied to a specific M1 device. These staked tokens act as collateral, incentivizing honest behavior. **Here’s how it works:** * **Device Required**: You must own and operate at least one M1 Edge Device to be eligible for staking. * **Token Commitment**: Users lock a specified amount of TOPS tokens to the wallet linked with an M1 device. * **Uptime Matters**: The longer your device stays online and contributes to the network, the more rewards you earn. * **Auto-Reinvest Option**: Users can opt in to automatically boost their staking rewards. Once staked, your tokens will start contributing to the BONUS\_REWARD pool depending on your STAKING\_WEIGHT. ## Staking’s role in Reward Calculation Staking directly affects the BONUS\_REWARD component of your total epoch rewards. **`STAKING_WEIGHT`** is calculated as: ``` STAKING_WEIGHT = WEIGHT × (DEVICE_STAKING / TOTAL_STAKING) ``` Where: * `DEVICE_STAKING`: Amount of TOPS tokens staked on a specific M1 device. * `TOTAL_STAKING`: Total TOPS tokens staked across the network. * `WEIGHT`: Weighting function, using an exponent of 0.8 (f(x)^0.8) to normalize the distribution. \ \&#xNAN;**`BONUS_REWARD`** is then calculated as: ``` BONUS_REWARD = EPOCH_POOL × STAKING_WEIGHT × AI_TASK_SCORE × DENSITY_BOOST ``` Where: * `BONUS_REWARD`: The reward allocated for **devices with staking**, sourced from the `EPOCH_POOL` * `EPOUCH_POOL`: The total amount of $TOPS allocated for `BONUS_REWARD` in each epoch. * `STAKING_WEIGHT`: The weighted ratio of a device’s staking contribution compared to the entire network. * `AI_TASK_SCORE`: The performance score of AI tasks processed by the device, which impacts the bonus. * `DENSITY_BOOST`: A multiplier applied to rewards if the device operates in a high-density area. ## Benefits of staking in iG3 Ecosystem * Passive Income: Earn TOPS rewards proportional to your staking weight. * Network Contribution: Staking supports AI agent operations running on the decentralized edge. * Hardware-Linked: Ties your stake to real compute power on your own device. * Reinvestment Option: Auto-compound feature allows flexible % reinvest strategy. * DAO Participation: Stakers may be eligible to vote on future governance proposals. ## Risks and Considerations **Lock-up Periods:** * Users may unstake at any time. * Upon unstaking, your staking amount is immediately set to **0** and you will not earn BONUS\_REWARD for the running epoch. * The unstaked tokens will be withdrawable after a **7-day** unbonding period. * You can only have **01** unstaking request per wallet at a time, but you can unstake from multiple devices simultaneously. You can also cancel your unstaking request if you change your mind. Once you cancel and submit another request, the unbonding period starts over. **Market Volatility:** The value of your staked TOPS may change due to market conditions. ## Getting started with staking To begin staking your TOPS tokens: 1. **Get an M1 Device**: Required to access the staking dashboard. 2. **Set Up Wallet**: Use the same wallet linked to your M1 device. 3. **Access the Staking Dashboard**: Log in via using the wallet address connected to your M1. 4. **Stake Your Tokens**: Choose your staking amount, set reinvest options, and confirm the transaction. You’re now earning rewards based on your uptime and staking weight! **Need help?** ▶ For additional information, please refer to our [Reward Mechanism Guide](https://docs.ig3.ai/reward-mechanism) or reach out in the [iG3 Discord](https://discord.gg/ig3).\ ▶ For detailed instructions on how to stake your TOPS tokens and maximize your participation, please refer to our [dedicated guide](https://docs.ig3.ai/staking-mechanism/how-to-stake-and-re-invest-usdtops) and [documentation](https://docs.ig3.ai/). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.ig3.ai/staking-mechanism.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.