Variable Reward Rate

The VRR is a constantly updating algorithm that will determine how NFTs, both Origin and Drift, will accumulate rewards. This algorithm considers a multitude of factors pulled from various key performance indicators (KPIs). Sources include TraderJoe, NFT Contracts, Rewards Pool, and the Marketplace.

To ensure good health in the protocol, a dynamic algorithm has been designed to calculate the daily reward of the NFTs. This algorithm obtains the most relevant KPIs that have a positive or negative impact on the protocol. In essence, it monitors the last 24 hours of the general behavior of the protocol, obtaining existing information on the blockchain or on the internet in order to adjust the rewards. Some examples of KPIs that generate a negative impact on the protocol include the increase in total emissions and the reduction of the rewards pool. Meanwhile, other parameters that are positive in the protocol such as the number of transformed NFTs, or the income generated in the marketplace that is able to be returned to the rewards pool. Depending on the snapshot of the last 24 hours, the algorithm increases or decreases the rewards dynamically, updating the reward of the NFTs in the smart contracts.

The VRR Algorithm Will be managed by the following variables:

  • Upper Limit

    • What is the upper limit of rewards per day per NFT, to ensure a long run rate.

  • Lower Limit

    • What is the lower limit of rewards per day per NFT, to ensure a minimum payout.

  • Current Total Origin & Drift NFTs.

    • (number of active NFTs Origin & Drift ) Odin + Thor

  • Current Daily emissions (total rewards claimed from rewards pool in latest 24h)

    • Total rewards left the rewards pool in the last 24h

  • Current Total Origin boosters active

    • How many active Boosters are associated with existing Origin NFTs

  • Current Total Origin NFTs created using tokens

    • How many NFTs were created in the last 24h using Tokens (returned to the rewards pool)

  • Current Total rewards returned to rewards pool in last 24h

    • How many Tokens are returning to the rewards pool from (marketplace fees, buybacks, etc) in the last 24h

  • Drift NFTs avg multiplier

    • Drift avg multiplier (24h)

  • Minimum days enforced to distribute rewards

    • How many days of rewards are guaranteed with the current conditions and with the same rate before changing. This guarantees a more stable rate of rewards over time.

Not all of these factors will be used at launch, and variables will be continuously introduced in order to further refine our algorithm.

All of these factors are blended into a proprietary algorithm that will be summed and displayed as the VRR in the dApp. This means that NFTs will no longer deliver static reward amounts, but a fluid amount that will adjust according to the health of the protocol.

VRR began at the below, but based on the above description is subject to constant fluctuation;

  • 0.008 Thor per Day for an Origin Odin Node

  • 0.0016 Thor per Day for an Origin Thor Node

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