This example outlines the rewards distribution for Epoch 2 in the Vana protocol, shaped by the following VRCs:

• VRC-2: Establishes performance metrics where 80% of rewards are based on stake and 20% on unique wallets contributing verified data.
• VRC-3: Introduces a variable staking split, allowing DataDAOs to allocate 40%-60% of rewards to stakers.
• VRC-4: Adds sublinear rewards for DataDAO creators, where rewards scale based on the square root of a DataDAO's score, benefiting smaller DataDAOs.

Key Variables

• epochRewardAmount: Total rewards for the rewards cycle (e.g., 400,000 VANA).
• stakersPercentage: Percentage allocated to stakers (40%-60% per DataDAO).
• epochDlpsLimit: Maximum number of eligible DataDAOs (e.g., Top 16).
• epochSize: Length of one rewards cycle (e.g., 21 days).

$VANA Stakers Rewards

1. Calculate DataDAO Score

A weighted calculation combining stake contribution and unique wallet activity.

2. Calculate DataDAO Reward

Rewards are proportional to the DataDAO's score.

3. Calculate Stakers’ Share

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

4. Calculate EPY (Single Epoch Yield)

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

5. Calculate APY (Annual Yield)

APY scales the EPY to a full year.

DataDAO Creators Rewards

1. Calculate Overall Treasury Allocation

2. Calculate Adjusted Square Root of the DLP Score

3. Calculate Treasury Allocation for Each DLP

Example

Assumptions:

• Epoch Reward Amount: 100,000 VANA.

• DataDAOs: 3 (DLP1, DLP2, DLP3)

• Staker Percentages: DLP1: 80%, DLP2: 60%, DLP3: 40%.

• Metrics Weights: 80% - total staked, 20% - unique wallets

• Performance Metrics:

  DLP	Stake (VANA)	Unique Wallets
  DLP1	500,000	100
  DLP2	200,000	300
  DLP3	50,000	500

Stakers Calculations:

Step 1: Calculate DataDAO Score

Step 2: Calculate DataDAO Reward

Step 3: Calculate Stakers’ Share

Step 4: Calculate EPY (Single Epoch Yield)

Step 5: Calculate APY (Annual Yield)

DataDAO Creators Calculations:

Repeat Step 1 and Step 2 from Stakers Calculations

Step 3: Calculate Epoch Treasury Allocation

Treasury Allocation (Total) = 11,112 + 11,200 + 9,864 = 32,176 $VANA

Step 4: Calculate Adjusted Square Root of the DLP Score

Step 5: Calculate Treasury Allocation for Each DLP

Summary

Totals:

• Total Rewards Distributed: 52,391 + 28,100 + 19,509 = 100,000 $ VANA
• Total Stakers' Rewards: 44,448 + 16,800 + 6,576 = 67,824  $VANA
• Total Treasury Rewards: 7,943 + 11,300 + 12,933 = 32,176 $VANA

Key Insights

• Each DataDAO can customize its stakers allocation within 40% - 60% range to balance treasury growth and staker incentives.
• If a DataDAO drops out of the Top 16 or Minimum Requirements, it won't be eligible for rewards at the end of the epoch
• APY is an annualized estimate based on current conditions and may change within the epoch.