Pass Holding and PoL Reward

When a user buys a Pass, the BERA they spend is automatically staked into the BGT Reward Vault, allowing them to earn rewards through the PoL mechanism. Once the user sells the Pass, the staked amount is unstaked, and they can claim their earned rewards from the BGT Station.

How Automatic Staking Works

Using Berachain's POLTech, Berally employs smart contracts to stake the spent BERA on behalf of users. Here's a simplified overview of how it works:

When a user purchases a Pass, the smart contract generates a dummy staking token, which acts as a receipt indicating the amount of BERA spent. This token is then automatically staked into the Berachain Rewards Vault, earning rewards without any manual action from the user.

The staked amount is based on the 'Buy Price' — the amount of BERA spent on the Pass. Regardless of future price fluctuations, the staked amount remains the same. Essentially, the more BERA spent on Passes, the more is staked in the Reward Vault on the user's behalf.

Handling Fluctuations in Pass Prices

So, what happens when users buy and sell multiple Passes at different times, especially when prices fluctuate? To maintain fairness, we use the First In, First Out (FIFO) method. This means the first Pass bought will be the first one unstaked and sold, continuing in order until the last Pass is sold.

You might think: 'But I spent the most on my first Pass! I want to sell the cheaper ones first.' I get that, but our priorities here are AUTOMATION and ORGANIZATION. Currently, this is the most efficient way to make everything automatic and fair. If you want more control, you'll need to manually stake and unstake your Passes, which involves jumping between platforms, interacting with multiple smart contracts, and tracking all your Passes—basically, a hassle.

Conclusion

There are two key takeaways: 1. Every BERA you spend on a Pass is automatically staked into the Berachain Reward Vault, earning rewards until you sell it. 2. FIFO! The first Pass you buy will be the first to be unstaked and sold, continuing in order until your last Pass is sold.