Rewards Distribution per Tier

The share of the Reward Pool allocated to each of the tiers changes dynamically. Rewards Pool distributed between Tiers according to the staking pool size:

$$\text{Tier}_k = M_k * \left( \frac{\text{Staking Pool}_k}{\sum_{i=1}^{3} \text{Staking Pool}_i} \right) \Bigg/ \left( \sum_{i=1}^{3} M_i * \frac{\text{Staking Pool}_i}{\sum_{j=1}^{3} \text{Staking Pool}_j} \right)$$

Where:

• M - multiplier for the distribution of rewards per unit of staked token into a specific pool, according to Table 3.

• k - Tier number.

• Staking Pool k - the size of the pool staked by the owners of the CITRO token.

For a more understandable description of the distribution mechanism of multi-tier staking, let's look at an example:

In a given epoch, the size of the total CITRO stake is 10M tokens, and these tokens are distributed among the tiers as follows:

Condition / Tier number	Tier 3	Tier 2	Tier 1	Total
Amount of Stake Tokens, CITRO	2M	3M	5M	10M
Share of Total Pool Size, %	20%	30%	50%	100%

Table 5. Example of Token Distribution between Staking Tiers

Based on the reward pool distribution formula and the pool distribution multipliers from Table 4, it is possible to calculate the distribution shares between the tiers within the current epoch:

$$\text{Tier}_1 = \frac{2.25 \times \frac{5M}{10M}}{2.25 \times \frac{5M}{10M} + 1.50 \times \frac{3M}{10M} + 1.00 \times \frac{2M}{10M}} = 63.38\%$$

$$\text{Tier}_2 = \frac{1.50 \times \frac{3M}{10M}}{2.25 \times \frac{5M}{10M} + 1.50 \times \frac{3M}{10M} + 1.00 \times \frac{2M}{10M}} = 25.35\%$$

$$\text{Tier}_3 = \frac{1.00 \times \frac{2M}{10M}}{2.25 \times \frac{5M}{10M} + 1.50 \times \frac{3M}{10M} + 1.00 \times \frac{2M}{10M}} = 11.27\%$$

Thus, the CITRO token will be received 2.25x more rewards when staking in Tier 1 than when staking in Tier 3. This approach allows for dynamically more efficient rewarding of users.