Calculating Rewards
Token Curve Adjuster and BNB Rewards
In order to prevent the snowballing advantage curve of early birds against those who mint tGOLD later, the tGOLD contract employs an adjuster mechanism that is designed to calculate final BNB rewards after applying deduction correlated with the number of burned tQUEST tokens.
For Example:
An early user burns 3,000 tQUEST (valued at 1 BNB at the time of burn) and receives 1 tGOLD. After some time, tQUEST price triples, and the second user burns 1,000 tQUEST (again valued at 1 BNB at the time of burn) and receives 1 tGOLD. Even though they make the same burn value in BNB, the equity deduction to the early user is three times more than the second user because of the triple token amount at the time of the burn.
User A BNB Reward: tGOLD Share - 3x deduction (3,000 tokens) User B BNB Reward: tGOLD Share - 1x deduction (1,000 tokens)
This feature is designed to support the sustainability of the ecosystem, balance the excessive advantages of early investors, and incentivize new investors to keep burning tQUEST tokens. However, it should also be kept in mind that it is designed merely to be a balancing factor, and early holders will still be able to reap more rewards.
Reflective tGOLD Rewards
Reflective rewards are allocated proportionately to the user's tGOLD share. A user's pool share is determined by the tGOLD amount held in wallet in proportion to the total tGOLD held by all users.
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