Incentivization Program
Last updated
Last updated
To reward long-term holders who have shown loyalty and made a significant contribution to the development of the product, the platform has created a special Rewards pool. In order to become a participant in the rewards program, a user must lock INDX tokens in the specific pool.
Participation in the rewards program offers token holders the following benefits:
Reduced entry & exit fees.
Reward in INDX tokens.
Incentivization program rewards are distributed from the Community rewards allocation.
There are a total of 3 types of pools on the platform. The types differ among themselves in the minimum size of the locked tokens, the level of commission reduction, and the percentage of allocated rewards:
Tier number
Locked amount ($ worth in INDX)
Discount (entry/exit fees)
Tierk (% of rewards pool)
Tier 1
10.0K+
50.0%
65.0%
Tier 2
1.0K-10.0K
40.0%
35.0%
Tier 3
<1.0K*
25.0%
-
Table 6. Incentivization Program
* The minimal locked amount is $100 worth in INDX
Locking occurs based on epochs. Each epoch lasts for a week. If users decrease their locked amount during an epoch, they decrease the rewards they would have received.
Rewards are distributed at the end of each epoch based on the amount of tokens locked and the length of time they were locked. By following the rules of the incentivization program and keeping tokens locked until the end of the epoch, users can expect to be fully rewarded:
Where:
User's reward per epoch - rewards that a specific user will receive per week when locking a certain amount of INDX tokens into a specific Tier k pool
k - Tier number, k[1,3]
Reward pool per epoch - rewards distributed from the reward pool each week
Tierk - percentage of the Reward pool per epoch, which is distributed depending on the Tier of the lock, according to Table 3.
i=17min( User's active INDX amount ) - the sum of the daily minimum active INDX amount locked for a week
i=17min (Total users active INDX amountk) - the sum of the daily minimum active INDX amount locked among all users in the Tier k for a week
Below is an example of how rewards are calculated for a user participating in the incentivization program:
User John has 5K INDX (1 INDX = $1) in his account. John chooses a pool based on the number of tokens he plans to lock up - 5,000 INDX (if 1 INDX = $1). He deposits his tokens into the Tier 2 pool (1,000 - 10,000 INDX).
Available Benefits:
Reward Pool: Let's assume the reward pool is 1,000 INDX for the week.
Tier 2 Allocation: The Tier 2 pool accounts for 35% of the total reward pool. Therefore, Tier 2 is allocated 350 INDX (1,000 INDX * 35%).
John's Share: The total tokens in the Tier 2 pool remained at 50,000 INDX during the week, with John contributing 10% of this amount (5,000 INDX / 50,000 INDX). As a result, John receives 10% of the Tier 2 rewards, which equates to 35 INDX (350 INDX * 10%).
Discounted Fees: During the week, John buys an index for $1,000. As a Tier 2 participant, he is eligible for a discounted entry fee. Instead of paying the standard 2% entry fee ($20), he pays a reduced fee of 1.2% ($12), thanks to the 40% discount available to Tier 2 participants.
The implementation of a multi-tiered motivation system will allow token holders to gain additional benefits from owning indexes, while the protocol will establish a long-term user base.
