Overview

The incentive mechanism is designed to reward those who consistently contribute to the success of Reya Network in the most equitable way possible. Broadly, the program has the following principles:

1. Incentivize behaviour that contributed positively to the organic growth of the Network, while disincentivizing unproductive or ‘farming’ behavior;

2. reward the absolute size of users’ contribution while still significantly rewarding smaller but consistent contributors;

3. in particular, reward continuing and consistent contributions to the Network;

4. have adaptable incentives mechanisms that allow for increased incentives in the initial stages, and generally when needed in the future.

The incentives programs tries to implement these principles through three core tools: experience (XP), boosts and ranks.

Experience (XP) is a unified measure of contributions to the protocol. Essentially, the relative amounts and rates of XP accrual allows on one hand to focus incentives towards one part or another of the Network, while at the same time rebasing all of a user’s contributions in a single balance.

Boosts are XP accrual increases awarded to reward special or early contributions, keep engagement, or boost incentives generally if needed without changing the basic mechanisms directly.

Ranks are classification of users into tiers that are correlated, but not completely determined by XP balance, allowing consistent but perhaps smaller contributors to ‘mix it up’. While users are ranked weekly, only special snapshots, announced in advance, will be used, with the time between snapshots constituting a ‘season’.

The incentives program is designed so that rewards are routinely distributed to users, taking both XP and rank snapshots into account. When well calibrated, this should provide a distribution that both rewards users for their contribution, while ensuring a minimum balance between whales and smaller but consistent contributors.