Our Rewards Pool is Sustainable

Our rewards pool is managed to be sustainable. Here is how we do it.

1. Reward Distribution Over Time

   1. Epochs: Rewards are distributed over 14-day epochs.

   2. Daily Distribution: Each day during the epoch, 0.030% of the remaining reward pool tokens are distributed.

   3. Recalculation: The daily rewards percentage is recalculated at the start of each new epoch.

   4. Purpose: The 0.030% daily reward rate is designed to target an annual inflation rate of 3.5% in the first year, decreasing over time.

2. Pool Replenishment Mechanism

   1. Replenishment Source:

      1. 15% of proceeds from platform transactions are allocated to replenish the reward pool.

      2. Replenishment Threshold:

      3. Replenishment starts if the pool size falls below 75% of its initial supply.

      4. Once the pool reaches the 75% threshold again, replenishment stops, and excess funds are stored in the project treasury.

3. Self-Balancing Mechanism

   1. Over time, the project aims for an equilibrium where daily deposits into the reward pool (from platform activity) roughly match the daily rewards distributed.

   2. The replenishment is designed to stabilize the reward system and prevent total depletion of the pool.

4. Token Price Threshold:

   1. If the token price increases significantly (e.g., 3x or more), replenishment stops as the FIAT value of distributed tokens rises, even if the net tokens decrease.

   2. When prices are below the threshold, replenishment continues to maintain reward levels.

5. This threshold is flexible and adjusted yearly based on market conditions.

Example of Reward Flow

• Initial Supply: 300,000,000 tokens in the pool.

• Daily Reward: 0.030% of the pool = 90,000 tokens/day for the first epoch.

• Epoch Duration: After 14 days, 1,260,000 tokens are distributed.

• New Epoch Supply: 298,740,000 tokens.

• The daily reward for the next epoch is recalculated based on the new pool size.

Platform Transaction Example

• 15% (1,800 IGG) is allocated to the reward pool

• The remaining 10,200 IGG supports platform operations

• If the reward pool exceeds 75%, the 15% allocation goes to the treasury instead of the reward pool.

Key Takeaways

• The reward pool is designed to decrease over time, like Bitcoin’s deflationary model.

• Inflation is capped and managed through percentage-based distributions.

• Replenishment ensures sustainability, with adjustments tied to token price and liquidity.

• This self-balancing mechanism prevents token oversupply while maintaining a sustainable rewards program.