How Rewards Are Calculated

Introduction

The XRP Tundra protocol introduces a transparent and fair reward system for XRP stakers. This section explains how staking rewards are calculated, distributed, and adjusted over time. We’ve designed our reward mechanism to be both predictable for users and sustainable for the long-term health of the ecosystem.

The Reward Pool: Fixed Supply, Transparent Distribution

At the heart of our reward system is a dedicated pool of 25 million TUNDRA tokens, representing 25% of the total token supply. This pool is transferred to a dedicated Rewards wallet that is separate from the Treasury, ensuring that rewards are never commingled with operational funds.

A key feature of our tokenomics is that no additional TUNDRA tokens can ever be minted, as the Issuer account is blackholed (permanently disabled). This creates a truly fixed supply, protecting against inflation and preserving long-term value for token holders.

How Rewards Are Calculated

Staking rewards are distributed daily according to a formula that takes into account your stake size, staking duration, and any active promotional multipliers. The system is designed to reward longer-term commitment while maintaining flexibility for all users.

The reward formula works as follows:

Your Daily Reward = (Your Weight / Total Pool Weight) × Daily Emission × Pool Weight

Where:

• Your Weight = Your Stake × Duration Multiplier × Promotional Multiplier

• Total Pool Weight = Sum of all user weights in that staking pool

• Daily Emission = Total TUNDRA distributed each day (adjustable per epoch)

• Pool Weight = Distribution share for your chosen staking pool (7/30/60/90 days)

Duration Multipliers: Rewarding Longer Commitment

XRP Tundra rewards longer-term stakers with higher multipliers:

Staking Period	Multiplier
7 days	×1.00
30 days	×1.15
60 days	×1.30
90 days	×1.50

This means that staking for 90 days earns you 50% more rewards compared to staking the same amount for just 7 days, reflecting your greater commitment to the protocol.

Promotional Opportunities

To incentivize staking during specific periods or to boost participation in certain pools, XRP Tundra may introduce limited-time promotions with additional multipliers. For example, a “Back-to-Stack Promo” might add a 10% multiplier to 30-day and 60-day pools for a two-week period.

All promotions are:

• Published in advance with clear start and end dates

• Capped by a separate promotional budget (e.g., 100,000 TUNDRA maximum)

• Documented in signed configuration files for transparency

Reward Calculation Example

Let’s walk through a practical example to see how rewards are calculated:

Imagine you stake 10,000 XRP for 30 days when:

• The daily emission is 18,000 TUNDRA

• The 30-day pool weight is 0.35 (35% of daily rewards)

• The total stake in the 30-day pool is 1,000,000 XRP

First, we calculate your weight:

Your Weight = 10,000 XRP × 1.15 (30-day multiplier) = 11,500

Then, we calculate your daily reward:

Your Daily Reward = (11,500 / (1,000,000 × 1.15)) × (18,000 × 0.35) ≈ 72.5 TUNDRA per day

If you were to stake continuously for a year under these conditions, you would earn approximately 26,462 TUNDRA.

Our Transparency Commitment

XRP Tundra is built on principles of transparency and verifiability:

1. Immutable Cap: The maximum reward pool is fixed at 25 million TUNDRA tokens.

2. Signed Configurations: For each epoch, we publish a JSON file with all reward parameters, including daily emission rates, pool weights, and any active promotions.

3. Advance Notice: All parameter changes are announced at least 48 hours before activation.

4. On-Chain Verification: All reward allocations can be traced and verified on the XRP Ledger through our public Rewards wallet and escrow mechanisms.

Summary

The XRP Tundra reward system combines simplicity with fairness, offering higher returns for longer commitment while maintaining complete transparency. With a fixed supply of 25 million TUNDRA allocated to rewards and verifiable on-chain distributions, users can stake with confidence knowing exactly how their rewards are calculated and distributed.