Reward Pool
Last updated
Last updated
The Reward Pool in DEIN is designed to motivate platform users by providing incentives in the form of DEIN tokens. It holds a fixed supply of DEIN tokens that may change in the future due to distribution and Buybacks.
The initial distribution of rewards from the Rewards Pool is allocated as follows:
DEIN LP Staking: 25% of monthly rewards
DEIN Native Staking: 15% of monthly rewards
DEINxCover Staking: 60% of monthly rewards
It's important to note that the DEIN team (later the DAO) can choose to reassign rewards distribution for specific contracts or to create new ones with different incentive levels.
Rewards from the Reward Pool are distributed on a monthly basis (every 30 days).
At the beginning of each month, 1.5% of the outstanding (current) tokens in the Rewards Pool will be distributed as the monthly reward.
The above setup means that:
The reward pool is never exhausted since rewards are always awarded as a proportion of the pool's remaining tokens.
The incentives decrease over time, but the net USD worth of the awards may grow if the DEIN token's price improves.
This rewards mechanism provides capped inflation and is compatible with a fixed tokens supply (as opposed to perpetual inflation)
Yes, the DEIN team (and later the DAO) has the ability to adjust the percentage distribution of monthly rewards for each epoch. This allows flexibility in allocating rewards based on changing market circumstances and priorities. This however will only happen with sizeable new releases and won't be a common occurrence.
The Rewards Pool can be manually refilled with DEIN tokens through buybacks from the Treasury if the Pool's supply falls below 75% of the starting supply.
