Staking

The more you collectively contribute into the network, the greater the collective reward.

Studio Chain is a next-generation L2 tailored for high-performance applications in gaming, AI, and entertainment. Its security and decentralization rest on the success of its Resiliency Node network.

Staked $KARRAT tokens provide a real, verifiable service, securing the Resiliency Node network. And stakers can be rewarded for their contribution to network security.

An allocation of 20,000,000 $KARRAT has been funded for a 12-month staking rewards program for participants locking $KARRAT into Studio Chain Resiliency Nodes in order to bootstrap early staking for security.

The program introduces a scalable, community-driven APY model, where rewards increase with total network participation, reaching a maximum 20% APY if 100,000,000 $KARRAT is staked.

Scalable APY

The scalable APY design puts control in the hands of KARRAT holders. The more they collectively lock and secure the network, the greater the collective reward. This design aligns incentives, ensures a fair and transparent mechanism, and minimizes unnecessary emissions.

Tokens Staked	APY
5,000,000	1.00%
10,000,000	2.00%
15,000,000	3.00%
20,000,000	4.00%
25,000,000	5.00%
30,000,000	6.00%
35,000,000	7.00%
40,000,000	8.00%
45,000,000	9.00%
50,000,000	10.00%
55,000,000	11.00%
60,000,000	12.00%
65,000,000	13.00%
70,000,000	14.00%
75,000,000	15.00%
80,000,000	16.00%
85,000,000	17.00%
90,000,000	18.00%
95,000,000	19.00%
100,000,000	20.00%

This model is an extension of Studio Chain’s broader staking logic: community ownership, pooled security, and scalable opportunity. It ensures that rewards are proportional to effort and stake, and that incentives are earned for providing a critical function to Studio Chain, and are not just given.

Reward Model

• 12-month bootstrapped rewards program at launch of Studio Chain Mainnet

• Scaled APY model up to 20%

• Full 20,000,000 $KARRAT will be emitted only if 100,000,000 $KARRAT is staked

• Rewards distributed proportionally based on each participant’s share of total staked KARRAT across all Resiliency Nodes

• There is a 6-month hard lock on the principal stake

• Emissions accrue daily, claiming of said rewards are subject to an initial 30-day lock

• After the first 30-days of staking you can claim at will

• No compounding on rewards

Eligibility Criteria

• Locking $KARRAT into a Resiliency Node (individually or via pooled mechanism)

• Minimum amount of 10 $KARRAT to lock up.

Lock-Up & Unstaking

• After staking $KARRAT into a Resiliency Node, your principal tokens are locked for the first 6 months, however claims are redeemable as and when required post an initial 30-day rewards lock

• After 6 months, you can choose to unlock your staked $KARRAT However, there are gradually decreasing penalties through the first 12 months. These penalties are as below:

Month	Penalty on $KARRAT rewards
1 - 6	LOCKED
7	12%
8	10%
9	8%
10	6%
11	4%
12	2%
After 12 months	No Penalty

Eg. User locks up 100 $KARRAT and in month 7 is now sitting on a balance of 110 $KARRAT. The user decides to claim the rewards and unstake the principal. The user is now left with a total of 108.8 $KARRAT.

Why a 6-month hard lock?

Given Resiliency Nodes play a vital role in Studio Chain’s architecture to secure the network and provide resiliency. There is a need for strong network security and reliable node participation, which benefits from longer-term commitment. Staking to nodes provides a function to help secure the network. It is therefore required to ensure that there is adequate and sustained participation.

Unused Rewards

Any portion of the 20,000,000 $KARRAT not distributed by the end of the 12-month period will be returned to the Strategic Reserve.

Sequencer Revenue

More details coming soon.