Protocol Yield Distribution

Under ShieldLayer’s revenue-sharing model, staking $SHIELD not only secures the network but also allows token holders to earn real yield from protocol profits. Here’s how the system works:

Let’s assume the protocol reaches $500M TVL, generating 20% APY, or $100M profit per year. 90% of this profit ($90M) goes directly to users, while 10% ($10M) is allocated to protocol revenue for $SHIELD stakers.

If 30% of tokens are staked (i.e., $18M worth at a $60M valuation), then:

• $10M / $18M = 55.5% APY for stakers.

If only 20% of tokens are staked (i.e., $12M worth), then:

• $10M / $12M = 83.3% APY for stakers.

From a participants standpoint:

• If they acquired $SHIELD at a $60M valuation and the TVL reaches $1B, their protocol revenue share alone could represent 166%+ APY based on the same logic.

• At $2B TVL, the yield multiplies again, making staked $SHIELD a high-leverage position on protocol growth.

Additional mechanisms such as boosted rewards for long-term stakers and $SHIELD mining incentives can further enhance returns.