Staking Pools

Staking in the Bluechain ecosystem allows participants to lock their H2O tokens in staking pools to earn dividends from the system’s revenue.

Staking is the only way token holders can receive dividends in Bluechain, making it a key mechanism for rewarding long-term participants and supporting the project's stability. In return for staking their H2O tokens, stakers are rewarded based on the duration of their stake, with different staking periods offering varying levels of rewards.

Overview

Bluechain will launch with staking pools, each offering different maturity periods and reward structures. These pools will be designed to accommodate participants with different investment horizons, from those seeking shorter-term liquidity to those committed to long-term staking for higher rewards.

Staking Pool Maturities

3-Month Staking Pool:

• Lockup Period: 90 days

• Rewards: Lowest percentage of dividends distributed to this pool compared to the longer lockup periods. 5.0%.

• Purpose: This pool is intended for participants who want flexibility and prefer a shorter lockup period but are willing to accept lower rewards in exchange for liquidity.

6-Month Staking Pool:

• Lockup Period: 180 days

• Rewards: Moderate percentage of dividends allocated to this pool. Stakers who commit to a 6-month period earn higher rewards than those in the 3-month pool. 10.0%.

• Purpose: This pool is for participants seeking a balance between flexibility and reward potential. It offers a mid-term investment horizon with rewards that reflect the increased staking commitment.

12-Month Staking Pool:

• Lockup Period: 365 days

• Rewards: Highest percentage of dividends allocated to this pool. Stakers are rewarded with the largest share of the dividend pool, incentivizing long-term commitment to the platform. 85.0%.

• Purpose: This pool is designed for long-term believers in the Bluechain ecosystem. Stakers are rewarded with the highest dividends for their long-term commitment to the platform, encouraging a stable and reliable staking base.

Reward Distribution Mechanism

The dividends distributed to each pool are proportional to the length of the lockup period and the number of H2O tokens staked in the pool. The 12-month staking pool receives the highest percentage of rewards, followed by the 6-month pool, and finally the 3-month pool. This system incentivizes participants to commit to longer staking periods for greater returns while providing options for those who prefer shorter-term staking.

Each staking pool is governed by a smart contract that automates the distribution of rewards, ensuring transparency and accuracy in payouts. Stakers receive their rewards in SOL, providing liquidity and versatility for their earnings.

Dynamic Staking Rewards

Over time, as the Bluechain ecosystem grows and more Blue Credits are sold, the total rewards available for staking pools will increase. The reward percentages for each pool will also be adjusted periodically to reflect market conditions, the number of stakers in each pool, and the overall performance of the ecosystem. This ensures that staking remains an attractive option for participants, balancing rewards with the platform’s sustainability.

Why Staking is Important

Staking pools provide multiple benefits to the Bluechain ecosystem:

• Incentivizing Long-Term Participation: By offering higher rewards for longer staking periods, the system encourages participants to stay engaged and support the platform over extended periods.

• Sustaining the Ecosystem: The revenue generated from Blue Credits and system fees is distributed back to the community through staking rewards, creating a self-sustaining cycle of participation and growth.

• Passive Income for Token Holders: Stakers earn passive income in the form of dividends, allowing them to benefit from the platform’s success while contributing to its stability.

Conclusion

The Staking Pools in Bluechain provide a clear path for participants to earn rewards by locking up their H2O tokens. With three initial pools offering different lockup periods and rewards, the system accommodates both short-term flexibility and long-term commitment. As the ecosystem evolves, staking will remain a key driver of engagement and growth, with participants benefiting from the revenue generated by Blue Credits and sustainability projects.