Social Staking
A Dual Incentive Mechanism for Capital and Community Participation
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.
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