# 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:

* <mark style="color:blue;">**M**</mark> - multiplier for the distribution of rewards per unit of staked token into a specific pool, according to Table 3.
* <mark style="color:blue;">**k**</mark> - Tier number.
* <mark style="color:blue;">**Staking Pool k**</mark> - 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:

<table><thead><tr><th width="225">Condition / Tier number</th><th>Tier 3</th><th>Tier 2</th><th>Tier 1</th><th>Total</th></tr></thead><tbody><tr><td>Amount of Stake Tokens, CITRO</td><td>2M</td><td>3M</td><td>5M</td><td>10M</td></tr><tr><td>Share of Total Pool Size, %</td><td>20%</td><td>30%</td><td>50%</td><td>100%</td></tr></tbody></table>

> **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.


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