How is the value of stTON calculated relative to TON?

The value of stTON relative to TON is determined by the smart contract after each validation round. The calculations consider the staking rewards and platform fees.

stTON pricing

stTON/TON token price is continuously calculated by the formulas.

Staking TON:

stTON amount = TON staked / stTON price

Unstaking stTON:

TON amount = stTON unstaked * stTON price

stTON is priced by bemo in TON tokens and is calculated by the formula:

stTON price = (ton_pool + staking_reward - bemo_fee) / ton_pool

ton_pool – TON tokens in the pool

staking_reward – bemo validation rewards

The stTON app price accounts for the reward accumulated after each validation round.

Due to the nature of staking, the stTON app price is constantly growing. The staked token price growth rate equals the TON blockchain staking yield ex bemo protocol fees.

bemo application fee equals twenty percent of the TON blockchain staking rewards. The fee includes the validation and the application services and is charged after every validation round.

For example,

if the current price of stTON is 1.2 TON and the net staking yield is 5% per year, after one year, 1 stTON will be worth 1.26 TON (1.2 + 0.06).

stTON is fully backed by the staking pool, consisting of TON tokens participating in validation. This ensures there is no risk of a depeg, meaning the price deviation from its fundamental value is eliminated.