Staked SPS tokens can (but are not required to) be staked on a particular player which will allow both the SPS holder and the player to earn rewards based on the player's performance.
SPS holders may stake their SPS on themselves and/or other players and they may spread their stake among any number of different players that they choose. Players may also choose to limit the players who may stake SPS on them to their guild members, a specific list of accounts, or leave it open for anyone to stake SPS tokens on them. Additionally, staked SPS tokens can be added and removed from players at any time without any time limits or restrictions.
Both the Ranked Battles pool and the SPS Staking Rewards pool will work similarly to how the DEC rewards for ranked battles work currently. After every ranked battle, a number of "reward shares" will be calculated for the winner based on the winner's ranked ladder rating, their Energy Capture Rate (ECR), and any modifiers such as the use of gold cards, win streak, and guild or other bonuses.
Then the reward shares value will be adjusted based on the amount of SPS tokens staked on that player in total. The formula for adjusting the reward shares based on SPS tokens staked is as follows:
reward_shares = reward_shares * (sps_staked / (sps_staked + 1000))
Please note that the "1000" value in the above formula is a placeholder. The actual value will be determined by running various simulations with different values to see what works the best. It may also be adjusted in the future as necessary.
The final reward shares value will then be divided by the total number of reward shares earned by the winners of all ranked battles in the last 24 hours to determine the percent of both reward pools that will be allocated for that battle.
The SPS earned from the Ranked Battles reward pool will go to the player who won the battle, and the SPS from the SPS Staking Rewards pool will be divided among all of the accounts that staked SPS on the winning player based on their percentage of the total SPS staked on that player.
The system is designed such that the more SPS tokens that are staked on a player, the more rewards the player and the holders of the SPS tokens staked on them will earn in total, but with diminishing returns. This means that the more SPS tokens that are staked on a player, the lower the return will be per SPS token staked.
Therefore, it would not make sense for everyone to stake their SPS on the top-rated player because after a certain point it will provide better returns to stake SPS on a lower-rated player who does not have so much SPS already staked on them.
Please see the table below for some sample earnings calculations based on this formula. Please note that the numbers in the sample are based on a very early and rough simulation and the actual numbers seen in the game may vary significantly and will also change over time as the number of players competing for the fixed reward pool fluctuates. This should only be used as an illustration of how the formulas work out for players at different rating levels and for different amounts of SPS staked on them.
Once again, the above numbers are simply an illustration, but you can see that higher rated players are able to generate a higher return per staked SPS and for a larger amount of staked SPS than lower-rated players.
Because players earn a higher reward for themselves the more SPS that is staked on them, it is always in players' best interest to try to get as much SPS staked on themselves as possible. The higher their rating, the more they can entice other SPS holders to stake SPS on them because it will offer higher rewards for the SPS holders as well.