This example outlines the rewards distribution for Epoch 3 in the Vana protocol, shaped by VRC-8 and VRC-11

Standardized APY for Stakers: A single APY rate applies across all DLPs to prevent uneven incentives.
Removal of the 7-Day Unstaking Window: Stakers can now move their stakes dynamically without waiting periods
Removal of Sublinear Formula For DataDAO Creators: Rewards for creators are now determined by the linear formula, as it was in epoch 1.
100% Stake-Based Rewards: Unique contributor-based rewards have been removed, and all rewards are determined by stake.
Time-Weighted Staking Adjustments for Stakers and DataDAOs: The ranking of the top 16 DLPs is now determined by the updated scoring model, which accounts for adjusted short-term staking to prevent last-minute manipulation

epochRewardAmount: Total rewards for the rewards cycle (e.g., 400,000 VANA).
stakersPercentage: Percentage allocated to stakers (50% per DataDAO).
epochDlpsLimit: Maximum number of eligible DataDAOs (e.g., Top 16).
epochSize: Length of one rewards cycle (e.g., 21 days).

At this step, we apply time-weighting for stakes under 21 days, ensuring late stakers contribute less to the DLP Score.

Each DLP’s Score is now based on the Total Adjusted Stake from Step 1..

Rewards are proportional to the DataDAO's score.

The stakers' share is based on the DataDAO's chosen stakersPercentage.

EPY reflects the return for stakers in a single rewards cycle.

APR scales the EPY to a full year.

APY represents the return on staked assets if rewards are continuously staked and compounded at the end of each epoch for a full year.

With VRC-11, sublinear rewards are removed, and DataDAO rewards are now fully proportional to stake weight.

Example

Epoch Reward Amount = 400,000 VANA
DataDAOs = DLP1, DLP2, DLP3
Staker Percentage = 50% for all DLPs
Time-Weighted Staking:
- DLP1 received 1 stake that is staked for 1 day
- DLP2 received 2 stakes (staked for 5 days and 10 days)
- DLP3 received 3 stakes (staked for 7 days, 15 days, and 25 days)

Step 1: Calculate Adjusted Stake for DLP Score

DataDAO	Staked Amount	Days Staked	Multiplier	Formula	Adjusted Stake
DLP1	300,000	1 day	1/21	300,000 × 1 / 21	14,285.71
DLP2	400,000	5 days	5/21	400,000 × 5 / 21	95,238.10
DLP2	600,000	10 days	10/21	600,000 × 10 / 21	285,714.29
DLP3	250,000	7 days	7/21	250,000 × 7 / 21	83,333.33
DLP3	500,000	15 days	15/21	500,000 × 15 / 21	357,142.86
DLP3	100,000	25 days	1x	100,000 × 1	100,000

Summary of total adjusted stakes per DataDAO:

Step 2: Calculate DataDAO Score

Step 3: Calculate DataDAO Rewards

Step 4: Calculate Stakers' Share

Step 1: Calculate Stakes Scores

DataDAO	Staked Amount	Days Staked	Multiplier	Formula	Stake Score
DLP1	300,000	1 day	1/21	300,000 × 1 / 21	14,285.71
DLP2	400,000	5 days	5/21	400,000 × 5 / 21	95,238.10
DLP2	600,000	10 days	10/21	600,000 × 10 / 21	285,714.29
DLP3	250,000	7 days	7/21	250,000 × 7 / 21	83,333.33
DLP3	500,000	15 days	15/21	500,000 × 15 / 21	357,142.86
DLP3	100,000	25 days	1.1x	100,000 × 1.1	110,000

Step 2: Summarize Scores per DataDAO

Step 3: Calculate Rewards

DataDAO	Staked Amount	Stake Score	Formula	Adjusted Stake
DLP1	300,000	14,285.71	14,285.71 / 14,285.71 / 3,060	3,060 VANA
DLP2	400,000	95,238.10	95,238.10 / 380,952.38 / 81,440	20,360 VANA
DLP2	600,000	285,714.29	285,714.29 / 380,952.38 / 81,440	61,080 VANA
DLP3	250,000	83,333.33	83,333.33 / 550,476.19 / 115,500	17,470 VANA
DLP3	500,000	357,142.86	357,142.86 / 550,476.19 / 115,500	74,900 VANA
DLP3	100,000	110,000	110,000 / 550,476.19 / 115,500	23,130 VANA

This new structure for Cycle 3 ensures fairer, more sustainable staking and DataDAO participation while aligning with ecosystem goals. 🚀