DCA Rewards System
Dollar Cost Averaging (DCA) Rewards system is an experimental unique project of GOLDUCK Ecosystem. DCA Rewards is highly beneficial irrespective of the market conditions. GOLDUCK CORE Team has identified some ERC20 tokens on each chain to accumulate via Dollar Cost Averaging Method. Token Holders can claim the selected DCA rewards such as ETH, MATIC, DOGE, METIS etc, No staking required. Just HODL minimum required GOLDUCK Tokens in your wallet and claim DCA rewards from the GOLDX Platform.
The idea behind DCA Rewards is to motivate members to hold tokens for longer term and to discourage from selling/transferring of GolduckDAO tokens. DCA Rewards system works like buying the selected tokens collectively via Dollar Cost Averaging Method and share the earned rewards among eligible holders. By holding GOLDUCK tokens in their wallet, holders have an opportunity to earn various blue chip tokens at regular intervals.
IMPORTANT: DCA Rewards works only when you buy on DEX Platforms like Pancakeswap/Uniswap/Quickswap/Netswap.
DCA Rewards Features:
- 1.Motivate holders to hold tokens in their wallet for longer term
- 2.Buy in bits through all ups and downs from the collective funds.
- 3.Distribute the tokens as rewards to eligible holders as per their share
- 4.Holders can HOLD their rewards through all ups and downs and claim them when needed
- 5.DCA Rewards System supports to buy only ERC-20 Tokens
Buying tokens via Dollar Cost Averaging (DCA) is subject to availability of funds. Frequency will be upon community voting.
DCA REWARDS POOL must have funds in order to buy the selected tokens.
- 1.Holder must hold minimum number of GOLDUCK Tokens defined by the reward token.(May introduce to hold NFT along with minimum token balance in the near future)
- 2.A Token Holder must claim reward tokens in order to receive tokens to his wallet.
- 3.Multi Sig owners buy the selected reward tokens via DCA method (weekly or monthly based on the price of token via voting proposal). Any holder also can generate rewards to buy the reward tokens. When any holder runs generate rewards, smart contact uses only 10% of pool funds to buy the reward tokens. Multi Sig Owners have option to use upto 80% of the rewards pool funds to generate rewards for distribution.
- 4.Reward tokens will accrue till holder claim them.
- 5.Rewards Pool contract will distribute rewards maximum of 1% of your holding percentage. For Example: If you have Golduck Tokens more than 1% of Total Supply, then multi sig owners will exclude the wallet address from getting rewards. This will ensure whales will not eat up more DCA Rewards by buying more than 1% of Total Supply.
- 6.Multi-Sig Owners use the funds from treasury for network gas charges for generating rewards via DCA method.
How DCA Reward Tokens are Generated in the Pool?
In order to generate reward tokens in the pool, rewards pool must have funds. Then based on the share given in the smart contract the buy back will be triggered.
For example: Rewards Pool has 1 ETH and we are giving 3 reward tokens to the holders like BTC,SHIB and DOGE,
We define the percentage of each reward token, In our example we give share like BTC -50% , SHIB -25%, DOGE -25%.
Then smart contract will use 0.5 ETH to buy back BTC, 0.25 eth to buy SHIB and 0.25 eth to buy DOGE.
Once smart contract completed buying reward tokens with the available funds, holders can claim the rewards from GOLDX app.
How DCA Reward Pool is funded?
Rewards Pool is funded in two methods.
1. If any one purchase tokens via GoldX Platform, part of the amount goes to Rewards Pool.
2. From the Treasury Allocation.
GOLDUCK Community develops innovative projects. These projects will earn revenue, and part of the revenue will go to GOLDUCK Treasury (Multi Sig). Upon community approval, Treasury will allocate some funds to DCA Rewards Pool to buyback the selected reward tokens.
Over time, as more and more projects are launched, the revenue will be sent to Rewards Pool which will take care of buying via DCA method and distribute the reward tokens to GOLDUCK Token Holders.
Initially DCA Rewards will be available on BSC, ETH and Polygon. Will enable on Metis after testing is done on Andromeda.
Your holding percentage among eligible holders is your rewards share. Every time reward tokens are bought from the market, the smart contract checks your eligibility and allocate reward tokens based on your share.
Example Scenario: In this example, there are 4 holders and 3 reward tokens
Reward Token 1: Minimum Balance Required: 1000
Reward Token 2: Minimum Balance Required : 2000
Reward Token 3: Minimum Balance Required : 3000
Holder1 Token Balance: 1200
Holder2 Token Balance: 2000
Holder3 Token Balance : 3500
Holder4 Balance : 900
As per the above scenario only Holder1 is eligible to receive Reward token1, Holder2 is eligible to receive Reward Token 1 and Reward Token 2, Holder 3 is eligible to receive all 3 reward tokens. Holder 4 is not eligible to receive any reward tokens.
Example: Below are the tokens smart contract bought from the available funds in the rewards pool.
Rewards generated for Token1: 50.128984
Rewards generated for Token2 : 89.9847484
Rewards generated for Token3: 0.003849345
Reward Token Distribution Share Formula = Eligible Holder's Token Balance / Total Token Balance of Eligible Holders * 100
Calculation of Share of Reward Token1 : (Min Balance Required: 1200)
Total Token Balance for Reward Token1 = 6700 (3 holders are eligible. Total Token Balance of all 3 eligible holders is 6700)
Holder 1 Share% = 1200/6700 * 100 = 17.91%
Holder2 Share% = 2000/6700 * 100 = 29.85%
Holder3 Share% = 3500/6700 * 100 = 52.23%
Distribution of Reward Token1 to Holders based on their share.
Total generated rewards for Token1: 50.128984
Holder1 Share = 50.128984*17.91/100 = 8.9781010344
Holder2 Share = 50.12984*29.85/100 = 14.963501724
Holder3 Share = 50.12984*52.23/100= 26.1828154319
Calculation of Share of Reward Token2: (Min Balance Required: 2000)
Total Token Balance for Reward Token2 = 5500 (Holder2 and Holder3 only eligible. Their total token balance is 5500)
Holder2 Share% = 2000/5500 * 100 = 36.36%
Holder3 Share% = 3500/5500 * 100 = 63.63%
Total generated rewards for Token2: 89.9847484
Holder2 Share = 89.9847484*36.36/100 = 32.71845451824
Holder3 Share = 89.9847484*63.63/100= 57.25729540692
Calculation of Share of Reward Token3: (Min Balance Required: 3000)
Total Token Balance for Reward Token3 = 3500 (only holder 3 is eligible. Holder 3 token balance )
Holder3 Share% = 100%
Total generated rewards for Token3: 0.003849345
Holder 3 receives 0.0003849345 tokens
DCA Rewards is an experimental product. DCA Rewards Pools is a plug in product of GOLDUCK. In the long run, if community encounter inaccurate results or any issues with rewards pool in terms of gas fee or performance, on community voting rewards pool will be plugged out of GOLDUCK and the funds in the rewards pool will be transferred to Treasury.