Staking Mechanics

Tax Rates

Staking uses a self-assessed tax mechanism (Harberger Tax). You choose what yearly rate you're willing to pay. This creates a continuous auction for staking slots.

Rate Tiers

There are 30 discrete tax rates (percentages are yearly):

1%, 3%, 5%, 8%, 12%, 18%, 24%, 30%, 40%, 50%,
60%, 80%, 100%, 130%, 180%, 250%, 320%, 420%, 540%, 700%,
920%, 1200%, 1600%, 2000%, 2600%, 3400%, 4400%, 5700%, 7500%, 9700%

Rates are discrete (not continuous) to prevent micro-increment griefing.

Tax Calculation

Tax accrues continuously from the moment you stake:

tax_owed = (staked_amount × tax_rate × time_held) / (365 days × 100)

Tax is paid when you:

Unstake (deducted from payout)
Get snatched (deducted from compensation)
Manually pay via the dashboard

Snatching (Position Challenges)

Anyone can take your staking slots by committing to a higher tax rate.

Rules

Higher rate required: The challenger must use a strictly higher tax rate tier
3-day minimum hold: Positions are protected for 72 hours after creation
Full compensation: The snatched owner receives market value of their position minus accrued tax
Discrete tiers only: You can't snatch by increasing the rate by 0.01% — you must jump to the next tier

What the snatched owner receives

payout = (shares / total_shares) × current_total_supply - tax_owed

The payout reflects the current token price, not the entry price. If the protocol grew, you get more back than you put in.

Staking Pool

The staking pool holds 20% of all KRK supply. When new tokens are minted (from buys), stakers receive a proportional share. When tokens are burned (from sells), the pool shrinks proportionally.

Owner Slots

Total: 20,000 slots (representing 20% of supply)
Your slots = your percentage × 20,000
1,000 slots = 1% of the staking pool

Minimum Stake

To prevent fragmentation, there's a minimum stake:

min_stake = total_supply / 3000

At ~1.2M total supply, this is approximately 399 KRK.

Adjusting Your Rate

You can change your tax rate on an existing position:

Increasing: Takes effect immediately, extends snatch protection
Decreasing: Takes effect after a delay to prevent gaming

Strategy Guide

Goal	Recommended Rate	Why
Long-term earning	Low (1-8%)	Cheap to hold, accept challenge risk
Defensive holding	Medium (18-40%)	Balance of cost and protection
Aggressive accumulation	High (60%+)	Hard to challenge, but expensive
Short-term flip	Lowest available	Minimize holding cost

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