Genius Staking Mechanics ~ How Does Mining Genius Work?
Home » Genius Staking Mechanics ~ How Does Mining Genius Work?
There are two staking methods that you can use for Genius Mining to earn passive income, save for the future, create staking ladders, and save for retirement.
Essentially, Geni.app will allow Genius Token holders to mine for more Genius Token. Sort of like Bitcoin mining. This mining or staking is also sometimes loosely referred to as yield farming, etc. The app will ask you how much of your Genius do you wish to stake/ use for mining, and how long do you want your Genius to be mining for more Genius? So you tell it 1 day, you tell it 30 days, you can tell it any amount of days up to 4444 days (a little more than 12 years). Then, the app will ask for you to choose a mode. There are two modes of staking. One is simple, one is advanced.
Simple Mining is meant to mimic low risk, low reward.
Advanced Mining is meant to mimic high risk, high reward.
The only “risk” being whether or not you may need to prematurely end your Genius mining.
In summary, the app is used to pledge a certain amount of Genius, for a certain amount of time, and for a certain amount of risk as described above.
When you hit GO, its as if you’ve created your very own time-lock capsule that is mining Genius for you, and every day you get paid a passive income off that stake. That passive income you get paid, that’s put into your Genius miner, and at the end of all the days that you’ve pledged to keep your “time-lock”, you get your reward in the form of Genius inflation. You get all of the the rewards, and you get the original Genius that you staked (your principle). Advanced stakes also receive extra rewards based on the penalties incurred by miners.
In the Simple mode, the low risk mining, you won’t lose your principle if you need to prematurely end your mining.
In the Advanced mode, you need to stay disciplined and stick to your promise. You get a larger portion of rewards with an advanced stake, but you also have a greater risk of losing your principle and rewards should you choose to prematurely end your Genius mining.
As stated above, Genius Simple stakes won’t lose principle (fees for EES will not eat into your principle) which is safer staking mechanics for users who would like to reduce their risk. Simple Stake Miners get a max of ~25% of the total daily inflation rewards. The other 75% (at least) goes to Advanced Miners who also earn extra inflation from penalities incurred by miners (at a significantly higher proportion compared to HEX). geni.to/smartcontract
The A.I. involved in the Genius Smart Contract functions as formulas that depend on human activity and work algorithmically creating or computing actively what the best outcome will be for the ecosystem. As the A.I. layers the formulas, they are working to see how many people are breaking their promises. When someone breaks a promise, whether its a simple mining operation, or an advanced mining operation, the formulas will update the ecosystem’s penalty structure.
Since launching in late 2019, Hex outperformed every asset in every market across 2020 and 2021, rising in price by 10,000 fold, Throughout the first half of 2022, however, the HEX price has since fallen into a prolonged 95% downturn. The HEX contract’s early end stake penalties, a major mechanism in place to keep users from from breaking their promises, was not enough to curb this extreme selling pressure after HEX’s parabolic rise in price. Users within the HEX ecosystem continue to break their promises despite the early end-stake penalties. The need for a dynamic incentive and penalty system built into the smart financial contract is where Genius steps in to revolutionize programable store-of-value tokenomics.
Genius A.I. watches the market to see if its worth it for people to break their promise and actively changes its penalty structure to something that’s very predictable in order to incentivize people to stay true to their original promise.