Perpetual reward pool
How rewards are sustained long-term without draining the token supply.
A common issue in the blockchain space is that projects tend to give huge incentives (in order to prop up their token price) up-front and then eventually run out of tokens by doing so.
💡 A more elegant approach, inspired by Bitcoin, is a perpetual pool, where the rewards gradually go down over time, in order to ensure that the pool cannot run out of tokens to give in the foreseeable future.
The pool operates on an epoch basis, where each epoch has a fixed amount of per-block rewards (for simplicity's sake, we will refer to the rewards daily; from there, the per-block reward can be obtained simply by dividing the daily reward by the number of blocks within the day).
The epoch reward is always determined by the outstanding number of tokens in the reward pool.
🪙 The daily reward is split between users who perform the following actions:
Rank high enough in the Tournaments
Accrue points from the Loyalty System
Additionally, to offset a large amount of tokens entering the circulating supply at once, any rewards received would can have vesting, before they can be withdrawn and sold. This approach has been implemented by multiple projects and explored by leading researchers in the space. During the vesting period, users can still use the tokens on the platform (they just cannot withdraw and sell them). The vesting starts automatically and no user action is needed.
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