2 years ago
Reward System Update (Part 2). Board funds
We have already written that in the new reward system, tokens will first of all be sent not to users, but to communities, and only then distributed among their active participants. The question arises - how to divide the daily amount of rewards between all communities, or how many tokens should go to each individual board?
Distributing tokens evenly across all boards is a bad idea. All boards have a different number of users involved in them and, accordingly, should receive different rewards. Obviously, we need an indicator that will serve as a universal basis for determining the importance of the board in the entire community and, accordingly, its share in the overall pool of rewards. And we already have such an indicator.
In the new reward system, tokens will be distributed in proportion to the amount of MAIN tokens locked in the coins of each board (the number of tokens that users spent on buying board coins).
Example. The daily reward pool is 100,000 MAIN. There are three boards on the platform. In the first board, 1,000,000 tokens are locked, in the second - 800,000, in the third - 200,000. Then the first board will receive 50,000 tokens in a day, the second - 40,000, the third - 10,000.
Why we think this is the best approach:
1. This will allow MAIN token holders to make decisions about where to spend ecosystem tokens. Holders, when buying coins from a particular board, will essentially vote with their tokens for the reward pool to go to that particular board. And this is the most difficult indicator to manipulate.
2. This is good for coin holders, because each coin purchase will increase the board’s rewards, making it more attractive to all other users and increasing the chances of development.
3. Users who buy board coins in which they are most active will be able to increase their personal income in this way by increasing the total (and therefore personal) amount of rewards in the board.
4. Board coin owners, competing with each other for a common pool of rewards, can start buying additional coins, which will not only increase their value, but may also cause additional demand for MAIN tokens, which are needed to purchase coins.
5. Such mechanics, theoretically, can lead to the emergence of a unique phenomenon – the exchange of content and attention. Companies and users interested in getting an audience on MAIN can start creating boards of their projects and, by purchasing a large number of coins in them, immediately attract new authors and active participants to them.
Such a distribution system can lead to other extreme situations. For example, users can start creating boards and restrict other users from participating in them, taking all the rewards for themselves. Gradually, the community can develop a mechanism to protect against such behavior, which, for example, will introduce additional conditions for the inclusion of boards in the reward system.
In the next article, we will tell you about how we plan to distribute tokens from board funds directly among the participants of these boards.