Reward Share Mechanism

Reward Share Mechanism

The Reward Share Mechanism within the HoopX platform is structured to ensure that users receive a fair and proportional share of the platform's profits, which are distributed in ARB tokens. This mechanism reflects the user's level of engagement, investment, and commitment duration, resulting in an equitable distribution of rewards. Below is a detailed overview of how this mechanism operates:

Key Components of the Reward Share Mechanism

1. Membership Card Multiplier

• Role: The Membership Card Multiplier is a key factor in determining the reward share. Each user holds a membership NFT card, which carries a unique multiplier. This multiplier enhances the value of the user’s staked tokens, directly influencing the share of ARB rewards they receive.

• Impact: A higher multiplier results in a greater share of the staking rewards, making the membership card an essential asset for maximizing ARB returns.

2. Staked HOOPX Token Quantity

• Role: The quantity of HOOPX tokens staked by a user is another critical element in the reward calculation. The more tokens a user stakes, the larger their potential share of the ARB rewards.

• Calculation: For the reward share calculation, half of the staked HOOPX tokens are used as a multiplier in the formula. This emphasizes the importance of the quantity of tokens committed to the staking pool.

3. Lock Period

• Role: The Lock Period refers to the duration for which users choose to lock their tokens in the staking pool. A longer lock period is rewarded with a higher multiplier, which increases the user’s overall score and their share of the ARB rewards.

• Impact: Users who commit to longer lock periods are incentivized with a larger share of the ARB rewards, promoting long-term participation and stability within the platform.

Calculation of the Total Score

• Formula: The total score, which determines the reward share, is calculated using the following formula:

  Total Score = (Membership Card Multiplier + 0.5 * Staked HOOPX Token Quantity) * Lock Period Multiplier

This formula integrates all three components, ensuring that each aspect of a user’s participation is accurately reflected in the final ARB reward distribution.

Distribution of ARB Rewards

• Proportion of Rewards: The total score calculated for each user determines their proportion of the staking pool rewards, which are distributed in ARB tokens. The higher the score, the larger the share of ARB rewards the user receives.

• Automatic Distribution: Once the reward period concludes, ARB tokens are automatically distributed to users based on their total score. This process is transparent, with all transactions recorded on the blockchain for accountability.

Participation and Additional Benefits

• X Pool Participation: Users who engage in staking not only earn ARB rewards but also gain eligibility to participate in X Pool, where they can invest in early-stage crypto projects selected by HoopX. This dual benefit enhances the value of staking within the ecosystem.

• Enhanced Returns with Upgraded Membership: Users can increase their reward share by upgrading their membership cards, which come with higher multipliers. This encourages users to invest in their membership status to maximize ARB rewards and additional platform benefits.

Fairness and Incentivization

The Reward Share Mechanism is designed to be both fair and motivating. By considering the membership card, staked token quantity, and lock period, the system rewards users who are more committed and invested in the platform. This structure not only ensures a fair distribution of ARB rewards but also fosters a vibrant, engaged, and growing community within the HoopX ecosystem.