Tier-Weight Mechanics
0xPAD uses a novel tier-weight mechanics to ensure that every IDO allocation is fair for all participants. Based on the participation type or membership level, a user fall under a given tier which has a given max allocation and depending on the token weight of the users, they get a weighted max allocation.
Details of the mechanics of the Tier-weight protocol is presented here.
The IDO allocation a user receives depends on two factors, these are:
- The participation type or the membership tier of the user.
- The token weight of the user with respect to the protocol's token threshold.
These factors can be expressed in three important parameters which defines the allocation of the user, the parameters are:
- 1.which is the maximum possible allocation of the IDO.
- 2.which is the allocation factor of each tier or membership level/type, and
- 3.which is the protocol's token weight threshold.
If the tokens staked, LP staked or token held by a user is
, then the IDO allocation of this user is given by:
If the tokens staked, LP staked or token held by a user is
, then the IDO allocation of this user is given by:
It should be noted that for fairness of allocation distribution, the maximum possible allocation
and the protocol's token weight threshold
for a given IDO are the same for all tier levels.
Also, the tier allocation factors
for each tier or membership level are given by:
Tier | Allocation Factor |
---|---|
Guest | 0.2 |
Bronze | 0.4 |
Silver | 0.6 |
Gold | 0.8 |
Platinum | 1.0 |
For clarity, we consider the following IDO example with two scenario.
For a given IDO, given that
BUSD and
0xPAD.
In this scenario, the users stake or tokens held
0xPAD. Then the user's allocation for the IDO will be:
Then, depending on the tier of the user, the allocations of the user are as follows:
- 1.If the user is a GUEST participant, then:BUSD
- 2.If the user is a BRONZE participant, then:BUSD
- 3.If the user is a SILVER participant, then:BUSD
- 4.If the user is a GOLD participant, then:BUSD
- 5.If the user is a PLATINUM participant, then:BUSD
In this scenario, the users stake or tokens held
0xPAD. Then the user's allocation for the IDO will be:
Assuming
0xPAD, then depending on the tier of the user, the allocations of the user are as follows:
- 1.If the user is a GUEST participant, then:BUSD
- 2.If the user is a BRONZE participant, then:BUSD
- 3.If the user is a SILVER participant, then:BUSD
- 4.If the user is a GOLD participant, then:BUSD
- 5.If the user is a PLATINUM participant, then:BUSD
It should be noted that
for 0xPAD token is different from that of LP tokens for liquidity miners.
Last modified 1yr ago