Reward Distribution

Reward Pool Structure and Process

Cornucopias will incentivize platform participants through its reward pool. The specific actions eligible for incentives and the corresponding incentive amounts can be influenced by governance.

The Cornucopias year will be divided into Seasons, which define the passage of time and are used to add an extra layer of gameplay. Each season will be 13 calendar weeks. Rewards will be allocated per season using the reward pool.

The initial set of incentivized actions includes*:

  • 10% for staking $COPI

  • 18% to liquidity providers that stake the LP token (see eligible pairs below)

  • 17% to node operators

  • 55% to In-game rewards, highlighting the platformโ€™s commitment to rewarding skill and participation within its gaming ecosystem

*Percentage allocations are variable and subject to change each season, potentially ranging from 0% to an upper limit influenced by governance. This mechanism could also be temporarily inactive, all based on prioritizing the health and sustainability of the token ecosystem.

The rewards will be distributed from a fixed supply reward pool at variable frequencies, based on the outstanding tokens in the pool. Prior to the start of each season, a variable percentage, not exceeding 0.025% (or 2.5 basis points), will be applied to the rewards pool balance. This calculation aims to determine an estimated daily average of rewards to be distributed throughout the season. For purposes of the calculation, the starting Rewards Pool is defined as the Gameplay Rewards balance plus the Staking & Farming balance (as displayed in the Token Metrics section). The setup means that:

  • The reward pool can never be consumed because rewards are distributed as a percentage of the outstanding tokens in the pool.

  • Rewards pool decreases over time

  • This reward mechanism ensures capped inflation and is compatible with fixed supply tokens, unlike perpetual inflation models.

The rewards will be distributed based on the following formula:

Simplified formula:
Allocation of the Reward per User = The Contribution per User over the defined time period / The Sum of the Contributions for All of the Users in the System for the defined time period

The user contribution is defined as follows (based on the items above):

  • Number of LP tokens staked, weighted by duration (Multiplier)

    • LP Tokens would be obtained by users through a DEX, and then staked to the Cornucopias ecosystem contract. Approved DEX's and pairs are below:

  • Number of COPI tokens staked, weighted by duration (Multiplier)

  • Users running the nodes as described in the Hosting section

  • Gameplay activities as described in the Gameplay section

Multiplier Mechanics

For items with a multiplier (LP staking & $COPI staking), we can define the contribution (C) as a function of both the multiplier (M) and the tokens staked (T) as follows:

We can now define the multiplier (M) as a function of the duration for which the tokens were staked (in weeks), where (D) represents the stake duration in weeks, as follows:

Providing us with the following curve, where the multiplier increases over time (capped at 100 weeks):

This approach was initially introduced by Curveโ€™s vote locking mechanism.

After the duration expires, which was picked by the user, the tokens remain staked in the pool and can be withdrawn at any time. The pools keep accumulating rewards with their original multiplier. For example, if a user stakes for 50 weeks, their duration multiplier is based on 50 weeks. If a user stakes for 110 weeks, their duration multiplier is capped at the 100 week multiplier.

Rewards earned will be distributed to a smart contract that facilitates one of two actions:

  1. User may claim $COPI to their wallet, subject to an early claim fee or a vesting period.

  2. User may spend the $COPI, unrestricted, in the marketplace on all items.

Replenishing the Reward Pools

Some tokens are redirected from revenue streams to the Reward Pools, increasing the distributed rewards. Here's how it works in practice (example):

  1. User A visits the platform and purchases products worth 1,000 $COPI.

  2. For Cornucopias, up to 10% of all fees (revenue) collected (equivalent to 100 $COPI) will be allocated to replenishing the reward pool.

  3. The remaining 900 tokens are utilized to sustain the platform's operations and ensure its continued functionality.

Up to 10% of all fees collected will be allocated towards replenishment of the reward pool

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