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Proximity Reward System

Fenine’s 8-level hierarchical incentive model creates viral growth mechanics unlike any other blockchain.

How It Works

When you stake to a validator, you join a proximity chain. Every delegator who stakes after you becomes your “downline”, and you earn a percentage of their rewards:

Mathematical Model

Your total rewards: Rtotal=Rbase+k=18αk×RdownlinekR_{\text{total}} = R_{\text{base}} + \sum_{k=1}^{8} \alpha_k \times R_{\text{downline}_k} Proximity Coefficients (αk\alpha_k):

Example Scenario

Alice stakes 10,000 FEN on Day 1:
  • Month 1: 5 direct referrals → +35% APY boost
  • Month 3: 20 total downlines (8 levels) → +45% APY boost
  • Month 6: 100 total downlines → +60% APY boost
Total APY: 10% (base) + 60% (proximity) = 70% APYRannual=10,000×0.70=7,000 FENR_{\text{annual}} = 10,000 \times 0.70 = 7,000 \text{ FEN}

Ineligibility Handling

If your upline unstakes or exits, you don’t lose rewards - they redistribute: Rresidual=Rproximity×0.50 (back to you)+Rproximity×0.50 (to validator)R_{\text{residual}} = R_{\text{proximity}} \times 0.50 \text{ (back to you)} + R_{\text{proximity}} \times 0.50 \text{ (to validator)} Example:
  • Your Level-1 upline exits
  • You would’ve paid 7% to them
  • Instead: You keep 3.5%, validator gets 3.5%
  • Your net rewards increase!

Integration for dApps

Build proximity-aware applications:
Use Cases:
  • Referral dashboards: Show downline tree
  • Gamification: Leaderboards by proximity income
  • NFT bonuses: Airdrops to top 100 earners
  • Governance weight: Vote power based on network depth

NFT Passport System

On-chain identity + referral tracking built into the protocol.

Core Concept

NFTPassport (at 0x0000...1001) is a soulbound NFT that:
  1. Verifies identity: Proof of unique human (KYC optional)
  2. Tracks referrals: On-chain referral tree
  3. Gates access: Whitelist for dApps/presales
  4. Enables features: Composable across ecosystem

Smart Contract Interface

Integration Examples

Use Cases

Problem: Airdrops get farmed by bots
Solution: Require NFT Passport for claims
Result: One claim per verified human
Concept: Guilds = referral trees
  • Guild master = root node
  • Members = downlines
  • Track on-chain hierarchy
  • Distribute loot based on tree position
Integration: On-chain Twitter/Discord verification
  1. User mints passport
  2. Signs message with wallet
  3. Posts signature on social media
  4. System verifies and links accounts
Benefits:
  • Verified badges
  • Reputation portability
  • Cross-platform identity
Flow:
  1. User submits KYC docs off-chain
  2. Approved users get passport mint signature
  3. Mint passport with signature (on-chain proof)
  4. Access regulated services
Privacy: Personal data stays off-chain, only verification status on-chain

System Contract Integration

Four precompiled contracts at deterministic addresses:

1. FenineSystem (0x0000…1000)

Core FPoS logic - validator and delegator management. Key Functions:
Use Case: Staking dashboard

2. NFTPassport (0x0000…1001)

Already covered above - identity + referrals.

3. TaxManager (0x0000…1002)

Computes tax on staking rewards.
Use Case: Display fee breakdown

4. RewardManager (0x0000…1003)

Dynamic block reward configuration.
Use Case: Show upcoming reward changes

Comparison with Other Chains

Developer Tools

Fenine SDK (Coming Soon)

High-level abstractions for common operations:

Subgraph Templates

Index FPoS events:

Next Steps

Build a Staking dApp

Tutorial: Proximity-aware staking dashboard

NFT Passport Integration

Add identity verification to your dApp

System Contract Reference

Full ABI and function documentation

Migration Guide

Move existing contracts to Fenine