Last updated
Last updated
The process can be broken down into three key elements, each playing a crucial role in the overall functioning of the system:
User Deposits: Users actively participate in the protocol by depositing their funds. These deposits serve as the basis for the entire product, contributing to the pool of available capital. By depositing their funds, users not only become stakeholders in the system but also allow income to be generated through various investment or lending activities. Bountive applies a fee of 0.25% per transaction to accumulate funds in the treasury, supporting long-term growth and providing future incentives for our users.
For example, if you deposit $100 USDC on the first day of a 7-day raffle and hold it for an entire week, the average monthly balance would be $100 USDC. If you deposit $1,000 on the 4th day of a 7-day draw, your average balance will be lower than on the first day.
This method allows us to reward users who deposit earlier in the raffle.
Prize Allocation: The accumulated yield is then redistributed to users as prizes. The distribution of prizes is done through a random selection process, ensuring a fair and unbiased distribution of the value generated. Each week a user will receive the generated value of the week. This process will be repetitive. In summary, this system works through users depositing funds, and generating returns through various investing or lending activities. The accumulated yield is then distributed as prizes to users randomly each week. To ensure the next raffles we take 20% of the yield generated to put it back in the next raffle in the form of non-player capital.
By combining these three elements, the system creates a dynamic and engaging environment where users can actively participate, and potentially be rewarded with prizes, adding an element of gamification and incentive to the overall user experience.
