🥷
Samurai Protocol
  • DISCLAIMER
  • Samurai Financial
  • 1. What is Samurai and how does it work ?
    • 1.1 - What is Samurai?
    • 1.2 - What is the total supply of HNR tokens ?
    • 1.3 - Now, how does it actually work ?
    • 1.4 - How does Samurai differ from RING?
    • 1.5 - Why is SAMURAI on the Fantom (FTM) ?
    • 1.6 - Is Metamask the only wallet compatible for now ? What about TrustWallet ?
    • 1.7 - Do I need to install a VPS?
    • 1.8 - Do I need to keep my computer running ?
    • 1.9 - Where can I see the size of the liquidity pool ?
    • 1.10 - Smart Contract Functionality
  • 2. Understanding the NODES
    • 2.1 How does the Lottery system work?
    • 2.2 How does sliding tax work?
    • 2.3 - How much does a node cost ?
    • 2.4 - Can nodes be transferred from one wallet to another ?
    • 2.5 - Are these real nodes ?
    • 2.6 - Why do you call these "nodes" ?
    • 2.7 - I don’t see my rewards every 4 or 8 hours. Is there a problem ?
    • 2.8 - What happens if I don't claim my rewards every time ?
  • Tokenomics
  • Governance
  • Samurai AI
  • Vaults
  • MultiChain ZenGarden
  • Levels
  • Sambot
  • ZenEstate
  • Governance Proposals
    • Samurai Governance
    • Initiate and adopt protocol level governance
    • SIP-1: Adopt and enforce an incentivised LP staking mechanism - Zen Garden
  • [EXTENSION] SIP-1: Adopt and enforce an incentivised LP staking mechanism - Zen Garden
  • SIP-2: Implement a Samurai native OTC NFT solution
  • [EXTENSION] SIP-2: Implement a Samurai native OTC NFT solution
  • SIP-3: Implement, adopt and enforce Samurai Vaults
  • SIP-4: Implement, adopt and enforce Samurai Multichain ZenGarden
  • SIP-5: Implement, adopt and enforce Samurai Levels
  • SIP-6: Replenish Samurai Levels rewards
  • SIP-7: Conduct an OTC NFT acquisition event
  • SIP-8: Retroactive funding
  • SIP-9: Expand MultiChain ZenGarden
  • SIP-10: Conduct an OTC NFT distribution event
  • SIP-11: Temporarily pause Samurai Levels
  • SIP-12: Replenish Samurai Node NFT's rewards
  • SIP-13: Levels v2 Product feature set Ideation
  • SIP-14: Deploy and fund Samurai Governance Vault
  • SIP-15: Implement, adopt and enforce Samurai Levels v2
  • SIP-16: Conduct ‘Settlement & Release’ initiative
  • SIP-17: Expand ‘Settlement & Release’ initiative
  • SIP-18: Implement, adopt and enforce an update to Samurai Node NFT RPC Endpoints
  • SIP-19: Implement, adopt and enforce Samurai Chat
  • SIP-20: Refine Samurai Levels Parameters and Conditions
  • SIP-21: Retroactive funding 2.0
  • SIP-22: Conduct an OTC NFT acquisition event
  • SIP-23: Conduct an OTC NFT distribution event
  • SIP-24: Enact a Samurai Governance Vault Conversion
  • SIP-25: Refine Samurai Chat Parameters
  • SIP-26: Replenish Samurai Levels v2 rewards
  • Articles / Announcements
    • Samurai is here!
    • Honour
    • News, updates, migration and plans for Honour
    • Clearing the air and moving onwards
    • The path towards sustainability
Powered by GitBook
On this page
  1. 1. What is Samurai and how does it work ?

1.3 - Now, how does it actually work ?

Previous1.2 - What is the total supply of HNR tokens ?Next1.4 - How does Samurai differ from RING?

Last updated 5 months ago

The SAMURAI protocol is designed around an innovative and powerful reward mechanism : the SAMURAI-nodes.

SAMURAI-nodes are the tools that allow you to generate HNR rewards.

The protocol utilises a dynamic rewards pool to determine the rewards that node produce rather than relying on a static/fixed rate (the dynamic rate is adjusted based on the protocol's performance by considering metrics such as traded volume, HNR tokens in rewards pool, HNR token price volatility, etc.)

Samurai Nodes can no longer be created and purchased on Samurai's dApp directly.

To acquire a node, please visit where you can buy/trade/sell Samurai Node NFTs

This is the ONLY way to acquire a Samurai NFT Node.

-

After forking RING's codebase and before introducing the concept of a node cap, the protocol's sustainability heavily relied on the creation of new nodes. Individuals could acquire Samurai nodes with the use of the protocol's native tokens depending on the node's current price, which was showcased on the dApp. In exchange for the tokens, individuals would then be provided with Samurai nodes.

Automatically, a portion of these tokens would be sold into Fantom's native token (FTM) to incentivise the team and a portion would be kept in the Samurai protocol's native token form, largely used for the purpose of replenishing the rewards pool which determine's the protocol's ability to issue and distribute rewards.

Node Creation Token Split Mechanism

  • 10% of tokens to Pool 1, as 50% protocol native token (e.g. HNR) and 50% FTM

  • 70% of tokens to Pool 2, as 70% protocol native token (e.g. HNR) and 30% FTM

  • 20% of tokens to Pool 3 as 100% FTM

The above showcases the flow of HNR tokens when a node was created and highlights the great reliance of the overall system on continuous creations of new nodes to continuously replenish the rewards pool. The more nodes that would be created, the "fuller" the rewards pool would be and thus the greater is its ability to pay out and distribute rewards. This however poses an issue and systemic risk in cases where no new nodes are created, as the protocol could face a scenario where it is unable to pay out and distribute rewards. For these reasons, Samurai has attempted to substantially deviate from RING's fundamentals and introduced a number of new mechanisms and features such as NFT nodes, RPC endpoints across 3 blockchains, lottery system, dynamic reward pools, which pays out in accordance with the performance of the protocol, to effectively attempt to minimize and circumvent the occurrence of a "bank run" by avoiding to solely rely on node creations as the main incentive for new protocol entrants and provide additional utility and incentives besides sole node creations.

The protocol further strives to attain sustainability by leveraging mechanisms such as treasury, royalty collections on NFT nodes, floor sweeping and token buybacks. These mechanisms are a smaller, supplementary subset underpinning the protocol with focus on further bolstering its sustainability and utility by aiming to deploy and execute strategic decisions pertaining to crypto-capital allocation that strive to generate yield. The treasury utilises its funds and potentially generated returns to then further support the protocol in ways including but not limited to conducting token buybacks or sweeping the Samurai Node NFT floors. While we appreciate and acknowledge the short term nature and viability of these mechanisms, these enable the protocol to partially maintain its price stability, replenish the protocol’s rewards pools and partly reduce its token emissions (reward distributions) by removing Node NFTs from the circulation. The attained HNR tokens and NFT nodes are then sent to the rewards pool to further attempt mitigating the occurrence of a rewards pool death spiral whereby its lack of tokens would make it unable for nodes to redeem their tokens. The treasury, its size and operations are manually handled, filled, funded and determined at the discretion of the core team. However, there are a number of underlying mechanisms that are fully or semi-automated such as:

TofuNFT royalties

  • When Samurai Node NFTs are sold or bought on the NFT secondary marketplace (tofuNFT) a 3% royalty fee is collected and automatically directed to the treasury’s wallet address

Lottery pool

  • All tokens that the protocol derives from the losses of lottery games are collected and directed to the replenishment of the rewards pool

PaintSwap