Social Staking

A Dual Incentive Mechanism for Capital and Community Participation

Figure - Social Staking

The Social Staking model in League of Traders combines the traditional Proof of Stake (PoS) framework with a novel Proof of Community (PoC) approach to reward both individual token commitment and community-level engagement.

Participants lock LOT tokens to obtain Mining Power (MP), which determines their reward eligibility. Staking rewards are distributed from a fixed mining pool, allocated as follows: 40% to PoS and 60% to PoC. Both pools follow a declining emission schedule, releasing 91% of total rewards over six years according to the following decay model:

• Year 1: ⅓ of the total allocation

• Year 2: (⅓) × (⅔)

• Year 3: (⅓) × (⅔)²

• Continuing exponentially in subsequent years

Under the PoS model, rewards are proportional to the amount and duration of the user’s token lock-up. The PoC model, on the other hand, distributes rewards to the top 12 communities based on their collective voting power, which reflects user activity, leadership, and participation.

A distinctive advantage of the PoC system is that members of the same community can view each other’s portfolios and share trading strategies in a transparent and collaborative environment. This promotes peer-to-peer learning, trust, and collective performance improvement.

Social Staking is designed not only to incentivize financial participation, but also to cultivate engaged, knowledge-sharing communities—laying the foundation for long-term sustainability and growth within the League of Traders ecosystem.