As you all know, staking MWATs to gain rewards have been a core concept in the workings of the RED Platform from the beginning.

As promised in our White Paper, the MWAT hodlers will be able to stake their tokens for a period of 3 months and for that they will immediately gain an initial staking reward of 0.11 KWT per MWAT staked (initiating the initial staking will only be available once during a period of 1 week). The initial KWT will have a “shelf life” of 90 days, after which they will expire.

This is how initial staking will work. In order to better understand what the ECF is let’s talk first about how KWT is generated and distributed.

It all starts when the producers generate energy — for 1 KWh of electricity produced, the system generates 1 KWT, a tokenized form of energy. Out of each KWT generated, 5% goes to the Energy Community Fund (or ECF, for short) and the rest of 95% gets split between the consumers subscribed to the respective producers offer, based on the ratio between their installed consumption power and the producer’s production power.

Now let’s come back to ECF and talk about it in further detail. The ECF represents a pool of KWT (in the amount of 5% of the total energy produced in the RED platform).

You can gain rewards from this fund via MWAT staking!

For any MWAT holder, we have devised a recurring staking mechanism, so that anybody can gain rewards through staking.

The values and date above were used just to give an example.

Any RED user can stake MWATs for 90 days (three months). From the moment of staking, the user will immediately gain the entire reward in KWT, computed at the moment of staking, as it follows:

We will try to make it as transparent as possible by starting with some exact definitions.

Let’s define:

E as the size of the ECF P as the ratio between your staked MWAT and the total number of MWATs staked R as the reward in KWT that is received from staking MWAT. DR as the amount of the reward that is unlocked daily KWTL as the remaining locked KWT

( E, P, R, DR) are computed at the moment of the staking or the unlocking action

R is computed in this manner:

R = P x E

Just as with a normal battery, you will not be able to consume all the energy in an instant. The KWT will be in your wallet, but you will not be able to use them all at once. From the total staking reward, the user will be able to manually unlock (on a daily basis) the same percentage P of the remaining locked KWT (KWTL).

Thus making the daily reward DR computed as follows:

DR = KWTL x P

At the same time, to support the continuous growth of the ECF, 5% of DR will go back to the ECF and you will receive 95%.

For example, let’s say George stakes 1000 MWAT for 90 days, which represents P = 10% of the total staked MWAT. And let’s assume the size of ECF at the moment of his staking (E) is 1000 KWT. He instantly gains R = 0.1 x 1000 = 100 KWT. Each day, he can unlock DR = KWTL x P (P is computed at the moment of each unlocking). If, after 15 days, he stakes again, he gains additional KWT thus increasing KWTL. Now, each day he will be able to unlock the same DR = KWTL x P.

After the 90 days period, his MWATs will stay staked until you manually release them. Yet, adding MWATs to the stake pool will automatically prolong the staking period for all your staked MWATs.

For example, if you staked 1000 MWAT on 1st of January, you would normally be able to claim your reward anytime starting with 1st of April (after 90 days). However, if you add another 1000 MWAT on 1st of February, the staking period for all your funds (2000 MWAT) extends until 1st of May (90 more days from the addition of funds).

To test these staking mechanics and to ensure a smooth running of the system, we intend to have a beta staking period this March.

The values and date above were used just to give an example.

To conclude, thank you again for being part of the RED community and hope the detailed info has given you a better view on how staking will work.

So happy staking! And let’s all hope for sunny days!

About Restart Energy

Restart Energy Democracy (RED) is a blockchain-powered platform, backed by Restart Energy — a European energy provider with 20 million USD in revenues. The company was built with a vision to democratize the energy sector and quash the dominance of legacy monopolies in the energy world. The company’s credentials include a customer base of 27,000 household and 3,000 corporate clients, expanding at more than 2,000 clients per month (5,000 new customers in the first two months of 2018), and its impressive growth: 1,700% from 2015 until today.

Restart Energy is developing the world’s first peer-to-peer, fully decentralized energy transfer platform allowing users to send and receive energy worldwide, based on its proprietary virtual balancing system, that uses A.I., Big Data, and IoT technologies. The RED ecosystem is comprised of the RED-Platform, RED-Franchise, and MWAT Tokens.

The RED-Franchise is the first power retail franchise to simplify and allow any company or entrepreneur to operate their own power utility enterprise, enabling them to start selling energy in more than 35 deregulated energy markets globally.

MWAT tokens are crypto-tokens that enable the buying and selling of up to 1 MWh of electricity per month on the RED-Platform Software and will facilitate the development of affordable clean energy, through free-market practices. Upon completion of registration on the platform, an initial loyalty bonus of 0.11 kWh is applied. Producers send out monthly loyalty bonuses through the RED Loyalty System, totalling 1–5% of traded on-grid energy in exchange for access to the RED Platform.

Importantly, it should be noted that potential franchise partners will need to own (this is not a form of payment to us) a certain number of MWAT tokens, in order to qualify for our various franchise tiers — the secret to our award-winning growth as a business!

For more information, please visit our website, our Telegram, and read the Restart Energy whitepaper. Join our announcement channel for updates regarding Restart Energy Democracy.

We invite you to join our RED Platform’s beta and earn 50 MWAT for joining now; refer your friends for even more rewards.