🤑Incentives
Incentives for traders using halving mechanism similar to BTC halving
Incentives for traders
Traders who trade receive additional rewards, akin to Bitcoin miners being rewarded with BTC for each block they successfully mined. This reward provides longevity and incentives for market participants to continue to participate in Maiga’s Proof of Trading PoT token model.
Every 0.005 BNB and above (BUY) on DEX, 1 oMAIGA to max oMAIGA token will be allocated to the buyer. Minimum claim 1 oMAIGA, which is 0.005 BNB buy for first epoch.
Breakdown of incentives oMAIGA for Proof of Trading
Using the similar model as BTC halving, Maiga's Proof of Trading model rewards early traders who makes the trade and get incentives in oMAIGA token. Maiga allocated 35% of total supply (350,000,000 oMAIGA) for traders who buy MAIGA.
Note: oMAIGA conversion unlocks based on % of total trading volume of MAIGA, the higher the total accumulated trading volume, the more it unlocks.
MAIGA LP pool address on Pancakeswap: https://dex.coinmarketcap.com/token/bsc/0xcd1679f117e81defc4f0009311ddc23fc1ae4a5e/ Geckoterminal: https://www.geckoterminal.com/bsc/pools/0xf038f713ba88f133769718c08643ab2cd4915ef5300e47ec7f1a37839581cfd1
Assuming each BNB = $600 in USD. The calculation below based on the PoT algo:
How PoT incentives works?
For example, a user buys 1 BNB value of MAIGA, and current epoch is 1. The user then can go to the incentives page to claim 200 oMAIGA, because in epoch 1, every BNB buy is entitled to claim 200 oMAIGA.
Note that there will be a 30-45 seconds buffer before it is updated in the incentives page.
From epoch 1, we proceed to the next epoch if the accumulated BNB buys more than 500k. Note that accumulated BNB buy is counted by every buy transaction since the event started, instead of claimed oMAIGA. In other words, it is “first buy first serve” instead of “first come first serve”.
We have algorithms to check wash trading-like and arbitrage-like transactions within the same block. Every BNB buy of these transactions won’t be entitled for incentives. Once these wallets have been blacklisted, these wallets won’t be entitled for incentives in future even with normal buy transactions.
Maiga checks & blacklist wash trading-like and arbitrage-like transactions within the same block.
In order to incentivise bigger trade, based on the BNB amount (0.005 BNB to 10 BNB), the increase of incentives based on the size of BNB swap per epoch. Example, in epoch 1, IF Alice make a swap of 10 BNB for MAIGA, Alice gets 2,000 oMAIGA as reward for Proof of Trading.
Note: The oMAIGA conversion unlocks based on % of total trading volume of MAIGA, the higher the total accumulated trading volume, the more it unlocks.
Deflationary tokenomics
Our hypothesis using the same approach as BTC mining cost, the price of BTC needs to match with the electricity cost for the mining operations to stay profitable, otherwise, no miners will mine BTC, when the mining operation is unprofitable.
1 BNB buy = 0.25% fees x 2 (buy & sell) on DEX. Assuming BNB is priced at $600 each, therefore $600 * 0.25% * 2 = $3 fees for 1 oMAIGA.
** To trade profitably, traders cost is $3 for oMAIGA reward from Proof of Trading.Therefore, to incentivise a sustainable Proof of Trading token model, we created a deflationary token reward mechanism that halving in reward every epoch.
Here are the calculations:
For epoch 1; incentives are 200 oMAIGA. Cost basis at $3 for 1 trade.
$3 / 200 oMAIGA = 0.015.
0.015 * 1b token = $15m FDV
For epoch 2; incentives are 100 oMAIGA. Cost basis at $3 for 1 trade.
$3 / 100 oMAIGA = 0.03
0.03 * 1b token = $30m FDV
For epoch 3; incentives are 50 oMAIGA. Cost basis at $3 for 1 trade.
$3 / 50 oMAIGA = 0.06
0.06 * 1b token = $60m FDV
For epoch 4; incentives are 25 oMAIGA. Cost basis at $3 for 1 trade
$3 / 25 oMAIGA = 0.12
0.12 * 1b token = $120m FDV
For epoch 5; incentives are 12.5 oMAIGA. Cost basis at $3 for 1 trade
$3 / 12.5 oMAIGA = 0.24
0.24 * 1b token = $240m FDV
For epoch 6; incentives are 6.25 oMAIGA. Cost basis at $3 for 1 trade
$3 / 6.25 oMAIGA = 0.48
0.48 * 1b token = $480m FDV
For epoch 7; incentives are 3.125 oMAIGA. Cost basis at $3 for 1 trade
$3 / 3.125 oMAIGA = 0.96
0.96 * 1b token = $960m FDV
For epoch 8, incentives are 1.5625 oMAIGA. Cost basis at $3 for 1 trade
$3 / 1.5625 oMAIGA = 1.92
1.92 * 1b token = $1.92b FDV
For epoch 9, incentives are 0.78125 oMAIGA. Cost basis at $3 for 1 trade
$3 / 0.78125 oMAIGA = 3.84
3.84 * 1b token = $3.84b FDV
For epoch 10, incentives are 0.390625 oMAIGA. Cost basis at $3 for 1 trade
$3 / 0.390625 oMAIGA = 7.68
7.68 * 1b token = $7.68b FDV
Summary of the PoT incentives model
Based on this hypothesis model above, here are the highlights:
Total accumulated MAIGA trading volume will go beyond minimum $125b based on BNB price at $600.
This is assuming minimally as there will be trades that is less and more than 0.005-10 BNB, not including CEX trading volume in the calculation above and not including other derivatives market for MAIGA.
Realistically, we should be looking at a bigger trading size increase that includes CEX spot and derivatives market etc.
And hypothetical model for a profitable and sustainable Proof of Trading token model, based on epoch 10, each MAIGA could be traded around $7.68b FDV (subjected and depending on BNB price).
This approach of valuation is based on BTC mining cost framework.
Please do not take this as financial advise but just a benchmark for Proof of Trading token model projection.
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