The impact model of reinvesting airdrop token staking rewards on APY involves calculating the compounding effect. Reinvesting rewards increases the principal amount, leading to higher returns over time. The specific model depends on factors like the staking period, reward rate, and reinvestment frequency. For example, a project with a high annual reward rate and frequent reinvestment opportunities can significantly boost APY. Understanding this model helps investors optimize their staking strategies for maximum returns.