How Rewards are calculated
Though Paraset rewards are emitted in PRIME, we distribute rewards for your Sleeved cards in the equivalent amount of PDT (after a 5% service fee), calculated based on your Sleeved cards’ asset state and rarity score. We use a moving average of PRIME to PDT over the course of the epoch to calculate the conversion rate from PRIME to PDT.
The card asset state is critical, as the actual emissions received from the Echelon’s Caching contract change with it.
For every epoch, Priming receives PRIME emissions only from Cached cards that were deposited and pooled on Sleeves. When you Sleeve a card, it joins a queue so that when the relevant Paraset is complete, it can then be cached. To ensure a higher completion rate of Parasets, we have carved out a percentage of our total rewards for Sleeved (Queued) cards to incentivize a healthy pipeline of cards in the queue.
The rewards are structured accordingly and paid out in this order:
90% of total Paraset rewards are paid to Cached cards
5% of total Paraset rewards to Sleeved (Queued) cards
5% of total Paraset rewards are allocated to ParagonsDAO’s Treasury to continue funding future iterative developments
In addition, Sleeves calculate all rewards based on a relative rarity score, a function of card supply. In short, rarer cards earn a greater share of the relevant reward pool.
For Cached assets, rarity scores are factored into the overall Paraset earnings.
For Sleeved (Queued) assets, rarity scores are factored into a global pool for the 5% of earnings.
For illustrative purposes, here’s an example of how rewards are calculated for each user during an epoch:
A user sleeved 5 cards, where 4 cards are cached and 1 card is Queued.
The 4 Cached cards contributed to a completed Paraset, which earns 100 PRIME.
90% of the rewards are paid to Cached cards in that Paraset—90 PRIME (converted to PDT). If the user’s cards make up 10% of the Paraset’s value (based on Rarity Scores), the user receives 10% of the rewards (i.e. 9 PRIME converted to PDT).
The user’s Queued card collects from a global pool of 5% of all Cached Parasets’ rewards, based on relative rarity score. - If there are 10 cached Parasets earning 100 PRIME, that pool would be 5% * 1000 = 50 PRIME. - If there are 100 total Queued cards, and all cards had equal rarity, that would be .5 PRIME each.
In total, the user will receive 9.5 PRIME (converted to PDT) for the cards they Sleeved that epoch.
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