Replenishing the Reward Pool

Mechanics behind keeping the pool topped up via revenue, not inflation.

While Clutch’s reward pool is designed to be long-term and durable, token emissions follow a gradually decaying curve to ensure longevity and reduce inflation risk.

To keep rewards meaningful and ongoing, Clutch applies an automated replenishment model:

• A portion of platform revenue is allocated to buy back $CLUTCH from the market 💰

• These tokens are added to the reward pool only when its reserves fall below a preset threshold ⚖️

This ensures rewards remain attractive without over-saturating supply or inflating emissions.

The system maintains strong token demand while supporting loyal users with ongoing incentives by tying replenishment to both performance and scarcity.

This approach ensures a sustainable reward pool while maintaining a healthy demand for $CLUTCH tokens 🔁

Practical Application

• From a $700 spend, a 30% fee ($210) is levied.

• Below the threshold, 30% of this fee ($63) replenishes the rewards 💸

• Above the threshold, funds enhance liquidity instead.

The remaining $147 supports platform operations, illustrating our strategic, self-regulating approach to ensure long-term platform and user growth.

The replenishment will be carried out only as long as the token price is below a certain success threshold number. This number will be determined by the project on an ad-hoc basis and will be based on current market conditions. For example: if the threshold is set to 3x token price increase, replenishment will happen only while the token is below 3x, otherwise, the funds would be stored in treasury until the token price is below the set target or until they are needed by the project. This mechanic is done, since if the token price appreciates naturally well above the threshold, this means that the rewards would also increase (their FIAT equivalence) even if the net tokens distributed go down. The threshold amount will vary from year to year.⁤⁦