🤑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.

Users are able to claim incentives in oMAIGA if they buy MAIGA in PancakeSwap CLMM 0.01% pool after the "Proof of Trading" PoT incentives event starts.

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.

Epoch	BNB buy	in $ (BNB at $600)	Accumulated BNB Buy	Accumulated buy in $	oMAIGA incentives per BNB buy	Total oMAIGA	Accumulated oMAIGA
1	500000	300000000	500000	300000000	200	100000000	100000000
2	500000	300000000	1000000	600000000	100	50000000	150000000
3	1000000	600000000	2000000	1200000000	50	50000000	200000000
4	1000000	600000000	3000000	1800000000	25	25000000	225000000
5	2000000	1200000000	5000000	3000000000	12.5	25000000	250000000
6	3200000	1920000000	8200000	4920000000	6.25	20000000	270000000
7	6400000	3840000000	14600000	8760000000	3.125	20000000	290000000
8	12800000	7680000000	27400000	16440000000	1.5625	20000000	310000000
9	25600000	15360000000	53000000	31800000000	0.78125	20000000	330000000
10	51200000	30720000000	104200000	62520000000	0.390625	20000000	350000000

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.

Epoch	1 BNB buy	2 BNB buy	3 BNB buy	4 BNB buy	5 BNB buy	6 BNB buy	7 BNB buy	8 BNB buy	9 BNB buy	10 BNB buy
1	200	400	600	800	1000	1200	1400	1600	1800	2000
2	100	200	300	400	500	600	700	800	900	1000
3	50	100	150	200	250	300	350	400	450	500
4	25	50	75	100	125	150	175	200	225	250
5	12.5	25	37.5	50	62.5	75	87.5	100	112.5	125
6	6.25	12.5	18.75	25	31.25	37.5	43.75	50	56.25	62.5
7	3.125	6.25	9.375	12.5	15.625	18.75	21.875	25	28.125	31.25
8	1.5625	3.125	4.6875	6.25	7.8125	9.375	10.9375	12.5	14.0625	15.625
9	0.78125	1.5625	2.34375	3.125	3.90625	4.6875	5.46875	6.25	7.03125	7.8125
10	0.390625	0.78125	1.171875	1.5625	1.953125	2.34375	2.734375	3.125	3.515625	3.90625

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:

1. For epoch 1; incentives are 200 oMAIGA. Cost basis at $3 for 1 trade.

   1. $3 / 200 oMAIGA = 0.015.

   2. 0.015 * 1b token = $15m FDV

2. For epoch 2; incentives are 100 oMAIGA. Cost basis at $3 for 1 trade.

   1. $3 / 100 oMAIGA = 0.03

   2. 0.03 * 1b token = $30m FDV

3. For epoch 3; incentives are 50 oMAIGA. Cost basis at $3 for 1 trade.

   1. $3 / 50 oMAIGA = 0.06

   2. 0.06 * 1b token = $60m FDV

4. For epoch 4; incentives are 25 oMAIGA. Cost basis at $3 for 1 trade

   1. $3 / 25 oMAIGA = 0.12

   2. 0.12 * 1b token = $120m FDV

5. For epoch 5; incentives are 12.5 oMAIGA. Cost basis at $3 for 1 trade

   1. $3 / 12.5 oMAIGA = 0.24

   2. 0.24 * 1b token = $240m FDV

6. For epoch 6; incentives are 6.25 oMAIGA. Cost basis at $3 for 1 trade

   1. $3 / 6.25 oMAIGA = 0.48

   2. 0.48 * 1b token = $480m FDV

7. For epoch 7; incentives are 3.125 oMAIGA. Cost basis at $3 for 1 trade

   1. $3 / 3.125 oMAIGA = 0.96

   2. 0.96 * 1b token = $960m FDV

8. For epoch 8, incentives are 1.5625 oMAIGA. Cost basis at $3 for 1 trade

   1. $3 / 1.5625 oMAIGA = 1.92

   2. 1.92 * 1b token = $1.92b FDV

9. For epoch 9, incentives are 0.78125 oMAIGA. Cost basis at $3 for 1 trade

   1. $3 / 0.78125 oMAIGA = 3.84

   2. 3.84 * 1b token = $3.84b FDV

10. For epoch 10, incentives are 0.390625 oMAIGA. Cost basis at $3 for 1 trade

    1. $3 / 0.390625 oMAIGA = 7.68

    2. 7.68 * 1b token = $7.68b FDV

Summary of the PoT incentives model

Based on this hypothesis model above, here are the highlights:

1. Total accumulated MAIGA trading volume will go beyond minimum $125b based on BNB price at $600.

   1. 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.

   2. Realistically, we should be looking at a bigger trading size increase that includes CEX spot and derivatives market etc.

2. 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).

   1. This approach of valuation is based on BTC mining cost framework.

   2. Please do not take this as financial advise but just a benchmark for Proof of Trading token model projection.