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Reward payouts are percentage based, when we pay out rewards we payout a specific percentage of the reward pots current balance, which prevents over payments and also keeps payouts aligned with the funds circulating the economy at the time of payout.
Each time rewards are paid out the following occurs:
- We look at the current reward pot value and the reward pot value before the previous payout
- We calculate the difference between the previous and current reward pot balances and then add the amount of the last reward payout to the total.
- If the total is more than 12% of the previous reward pot balance => raise the reward payout percentage by 1%.
- If the total is less than 8% of the previous reward pot balance => decrease the reward payout percentage by 2%.
- If the total is between 8% and 12% of the previous reward pot balance => The reward payout percentage will remain the same.
- The payout percentage cannot go lower than 5% or higher than 15%
We then deduct the new percentage from the reward pot and use this for payouts.
We have conducted stress testing against the percentage based reward system: