Reflection Mechanism
The Reflection Mechanism is fundamental to the $SAI token ecosystem. It is designed to reward token holders and powered-up users for their active participation and contribution to the Social AI platform. By integrating this mechanism, we aim to create a sustainable and rewarding environment that values and incentivizes user engagement.
As part of the Reflection Mechanism, 15% of the platform fees generated from various activities on Social AI platform will be allocated as rewards to token holders and powered-up users. These fees may include transaction fees, advertising fees, and other revenue streams generated on the platform. Each month, a proportionate amount of the total fees collected will be automatically distributed in stablecoins such as USDT or USDC to eligible participants.
The distribution of rewards to the reflection token holders will be processed automatically every month. The allocated percentage will be converted into stablecoins such as USDT or USDC to ensure stability and predictability in the reward distribution process. The distribution will be executed through a transparent and auditable smart contract, which will calculate and allocate the rewards based on the holders' stake and active participation.
This distribution mechanism aims to incentivize holders to actively engage with the platform, stake their tokens, and contribute to the growth and success of the Social AI ecosystem. By distributing a portion of the platform fees to reflection token holders, we promote a sense of ownership, reward long-term commitment, and provide ongoing incentives for active participation in the platform's activities.
CALCULATION METHOD AND BENEFITS FOR PARTICIPANTS
The calculation of rewards for participants in the reflection mechanism is based on a proportional distribution model. The total rewards allocated to reflection token holders will be divided among eligible participants based on their stake and participation level in the platform.
The calculation method considers the following factors:
Stake Percentage: The proportion of tokens staked by each reflection token holder relative to the total stake on the platform. The higher the stake percentage, the larger the share of rewards.
Participation Level: The extent of active engagement and contribution to the platform by reflection token holders. This includes content creation, sharing, user engagement, and overall platform activity. The higher the participation level, the higher the potential rewards.
Power Level: The power level attained by reflection token holders through the power-up process. Power represents the influence and weight of a user's stake in the platform's voting and governance systems. Higher power levels contribute to increased rewards.
The calculation method will employ a transparent and auditable smart contract, utilizing the data stored on the blockchain to ensure accuracy and fairness in the distribution process. The algorithm will consider the above factors to determine the specific reward allocation for each participant.
Participants in the reflection mechanism can enjoy several benefits, including
Passive Income: By holding and staking the reflection token, participants can earn passive income through the distribution of rewards. The more tokens they hold and stake, the higher their potential rewards.
Token Value Appreciation: Burning a portion of the platform fees and the buyback mechanism reduces the token supply and enhances its scarcity. This deflationary mechanism aims to increase the token's value over time, potentially benefiting participants in token price appreciation.
Incentives for Active Engagement: The reflection mechanism encourages active engagement and participation on the platform. The system incentivizes users to create high-quality content, engage with the community, and contribute to the platform's growth by rewarding participants based on their stake, participation level, and power.
Fair Distribution: The proportional distribution model ensures fairness in allocating rewards, as participants are rewarded based on their relative stake and participation. This helps prevent a few users' monopolistic accumulations of rewards and promotes a more inclusive and equitable ecosystem.
EXAMPLE SCENARIOS
Formula:
Scenario 1 (User A):
Overall power: 10,000
Power decay: No decay
Power weight: 100%
Reflection payout: 15%
Collected fees: $3,000,000
Total power on the network: 60,000,000
Calculation:
User's share of revenue = (10,000 / 60,000,000) * 15% * $3,000,000
User's share of revenue = 0.0001666667 * 0.15 * $3,000,000
User's share of revenue = $750
Scenario 2 (User B):
Overall power: 5,000
Power decay: No decay
Power weight: 50%
Reflection payout: 15%
Collected fees: $3,000,000
Total power on the network: 60,000,000
Calculation:
User's share of revenue = (5,000 / 60,000,000) * 15% * $3,000,000
User's share of revenue = 8.333333e-05 * 0.15 * $3,000,000
User's share of revenue = $375
Scenario 3 (User C):
Overall power: 2,000
Power decay: No decay
Power weight: 20%
Reflection payout: 15%
Collected fees: $3,000,000
Total power on the network: 60,000,000
Calculation:
User's share of revenue = (2,000 / 60,000,000) * 15% * $3,000,000
User's share of revenue = 3.333333e-05 * 0.15 * $3,000,000
User's share of revenue = $150
Scenario 4 (User D):
Overall power: 8,000
Power decay: 50%
Power weight: 70%
Reflection payout: 15%
Collected fees: $3,000,000
Total power on the network: 60,000,000
Calculation:
Decayed power: 8,000 * (1 - 50%) = 4,000
User's share of revenue = (4,000 / 60,000,000) * 15% * $3,000,000
User's share of revenue = 6.666667e-05 * 0.15 * $3,000,000
User's share of revenue = $300
Scenario 5 (User E):
Overall power: 3,500
Power decay: 50%
Power weight: 50%
Reflection payout: 15%
Collected fees: $3,000,000
Total power on the network: 60,000,000
Calculation:
Decayed power: 3,500 * (1 - 50%) = 1,750
User's share of revenue = (1,750 / 60,000,000) * 15% * $3,000,000
User's share of revenue = 2.916667e-05 * 0.15 * $3,000,000
User's share of revenue = $131.25
Scenario 6 (User F):
Overall power: 1,200
Power decay: 70 days decayed
Power weight: 30%
Reflection payout: 15%
Collected fees: $3,000,000
Total power on the network: 60,000,000
Calculation:
Decayed power: 1,200 * (1 - 70 / 365) = 950.1369863
User's share of revenue = (950.1369863 / 60,000,000) * 15% * $3,000,000
User's share of revenue = 1.583894771e-05 * 0.15 * $3,000,000
User's share of revenue = $71.27
NOTE: These calculations are based on the assumptions provided and the formula used. The actual distribution of rewards may vary depending on the implementation of the smart contract and other factors.
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