5.3.1 Infinite Rewards Distribution
Wicrypt allocates approximately 25% of total token supply for the incentivisation policy, organized as a 3 separate ‘distribution streams’
- Host rewards
- Activity rewards (for all users)
- Staking rewards
Each stream is subjected to infinite release through a so-called ‘logarithmic distribution curve’ (please refer to the chart below).
It means that each time rewards are released (e.g. daily or weekly), the total number of distributed rewards will be slightly less (e.g. 99.5% of a previous distribution). Thanks to such an approach, the rewards curve will never drop to 0 and will be sustained infinitely.
Slight decrease in rewards amount is compensated by the anticipated long-term market cap increase of $WNT tokens. Wicrypt DAO can always make decisions to increase the current amount of distributed rewards in case the rewards curve gets too low.
Please refer to the picture below, visualizing the idea of logarithmic, infinite release of rewards:
Logarithmic rewards distribution