Ethereum staking has become a cornerstone of decentralized finance, offering users a way to earn passive income on their digital assets. For those looking to amplify their rewards, understanding strategic opportunities like airdrop events is crucial. This guide delves into a specific promotional event that allowed users to boost their earnings by increasing their BETH holdings, outlining the mechanics, eligibility, and calculation methods involved.
Understanding BETH and Its Role in Ethereum Staking
BETH represents your staked Ethereum on the Beacon Chain. When you stake ETH, you receive BETH tokens, which accrue staking rewards over time. These rewards are distributed daily, providing a steady stream of income. Holding BETH not only grants you these ongoing benefits but also makes you eligible for exclusive ecosystem opportunities, such as token airdrops from partnering projects.
Event Overview: Dual Rewards for BETH Holders
From September 28th to October 12th, 2023, a special event was held where users could earn dual rewards by increasing their BETH holdings. Participants received their standard ETH staking yields plus additional ZBC tokens through an airdrop. The reward pool for this event was 4,295,000 ZBC, distributed proportionally based on each user's average additional BETH holdings during the campaign period.
Key Dates and Eligibility Criteria
To qualify for the ZBC airdrop, users needed to meet two primary conditions:
- Increase their BETH holdings between September 28th, 2023, at 11:00 UTC+8 and October 12th, 2023, at 11:00 UTC+8.
- Maintain an average new holding of at least 0.1 BETH during this period.
It's important to note that even the chain rewards earned from pre-existing BETH holdings during the event were considered 'new' holdings for airdrop calculations. This meant long-term stakers could benefit without additional actions.
How to Acquire BETH Tokens
There are two primary methods to obtain BETH:
- Direct Staking: Users could stake their ETH directly through supported platforms to receive BETH tokens. This process locks your ETH for staking but generates daily rewards.
- Spot Trading: BETH was available for trading against USDT and ETH on various exchanges. This allowed users to purchase BETH without staking ETH directly, offering flexibility for traders.
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Calculating Your Airdrop Rewards
The event used a snapshot mechanism to determine user holdings. A baseline snapshot was taken on September 28th, 2023, at 10:00 UTC+8. Any holdings above 0.1 BETH in this snapshot set the benchmark. Daily snapshots followed throughout the event.
The formula for calculating airdrop rewards was:Airdrop Reward = (Your Daily Avg New BETH / Total Daily Avg New BETH Across All Users) × Total ZBC Reward Pool
Practical Example
Assume User A had 100 BETH in the baseline snapshot. During three days of the event, their holdings were 105, 109, and 101 BETH in daily snapshots. Their average new holding was:(105 + 109 + 101) / 3 - 100 = 5 BETH
If the total average new BETH across all users was 1,000 BETH and the reward pool was 4,295,000 ZBC, User A's reward would be:5 / 1,000 × 4,295,000 = 21,475 ZBC
This proportional distribution ensured fairness, rewarding users based on their relative contribution to the staking pool's growth.
Reward Distribution and Important Notes
ZBC airdrop rewards were distributed within 15 working days after the event concluded. ETH staking rewards continued to be credited daily to users' funding accounts.
Key points to remember:
- The reward pool was subsidized by the ZBC project team.
- Staking yields fluctuated based on Ethereum network conditions, with rewards reflecting actual on-chain earnings.
- Technical services, including node operation and maintenance, were managed by the platform, covering all associated costs.
Frequently Asked Questions
What is BETH?
BETH is a token representing staked Ethereum. It accrues staking rewards and can be traded or held to participate in ecosystem events like airdrops.
How did the snapshot mechanism work?
The platform took a baseline snapshot before the event and daily snapshots during it. The difference between your daily holdings and the baseline determined your 'new' holdings for reward calculations.
Could I qualify if I already held BETH before the event?
Yes. The chain rewards earned from existing holdings during the event period were counted as new holdings, making you eligible for the airdrop.
Were there any geographic restrictions?
Yes, residents of several jurisdictions, including the US, Hong Kong, and others, were excluded from participation due to regulatory constraints.
How were taxes and fees handled?
All applicable taxes, fees, and costs associated with receiving rewards were the sole responsibility of the participant.
What guarantees were offered?
The platform reserved the right to modify terms or cancel the event without prior notice, emphasizing the need for users to stay informed.
Strategic Implications for Crypto Holders
Events like these highlight the value of maintaining and strategically increasing holdings in staking tokens. Beyond immediate rewards, they offer exposure to new projects and tokens, diversifying your portfolio. For active participants, such opportunities can significantly enhance annual yields, especially when combined with regular staking income.
Always ensure you understand the terms, including eligibility and distribution rules, to maximize your benefits. Staying updated on upcoming events can provide a competitive edge in the dynamic crypto landscape.