XP and Token Strategy within Economic Model

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With a 50% ratio of community XP points across all campaigns and Marketplace, Community XP points will have significant value in participating in the $BONUS token Community Access pool while also having $BONUS for utility.

Community XP and $BONUS Token Dynamics

The conversion of Community XP to $BONUS tokens for participation in the Community Access Pool is governed by a specific arithmetic formula, ensuring a fair and transparent distribution mechanism:

R_XP = XP_total/BONUS_minted

BONUS_USER = XP_commit/R_XP

BONUS_USER = 5000/100 = 500

V_BONUS = BONUS_USER × P_BONUS

V_discount = V_BONUS/2

Value Proposition and Discounts

This example illustrates the strategic implementation of the dual-token system within BonusBlock's ecosystem, showcasing how Community XP points and $BONUS tokens interact to facilitate access, utility, and value capture through our economic and vesting model. In this example, the price of $BONUS is set at $4.10 (used as a reference for calculation purposes only).

XP to $BONUS Conversion:

• Let's assume, 1 $BONUS is equivalent to 100 XP.
  • This ratio will be governed by how much Community XP is minted along the way, keeping a steady growth.)
  • It's important to note that this ratio can change based on the amount of Community XP being created.

User Commitment Example:

• If a user commits 5000 XP:
  • Converts into 500 $BONUS tokens (because 5000 XP ÷ 100 XP/$BONUS = 500 $BONUS).
  • This equates to a value of $2050 (because 500 $BONUS × $4.10/$BONUS = $2050).
  • With a 50% discount, $1025 will be required in $ETH, $USDT, or $USDC to be bonded with Community XP.

With the current $BONUS price set at $4.10, users converting 5000 XP would acquire 500 $BONUS tokens, equivalent to $2050 in value. A 50% discount mechanism allows users to bond this amount with $ETH, $USDT, or $USDC for half the price, i.e., $1025, enhancing the appeal and accessibility of $BONUS tokens.

Distribution and Participation Incentives

The BonusBlock dual-token system encourages the bonding of Community XP and liquid tokens, rewarding users with a proportional amount of $BONUS tokens. A hard cap ensures equitable participation across the community, benefiting both high and low contributors. Community XP directly correlates with user activity, driving engagement and fostering a dynamic ecosystem growth.

This model underscores the innovative approach to token distribution and engagement, leveraging Community XP as a pivotal element in the economic and participatory dynamics of the ecosystem.

Token Release and Vesting Strategy

A structured release schedule, aligned with user growth, controls access to token unlocks, with 45% of the total token supply being restricted. This approach significantly limits market exposure while enabling community members to acquire and retain a substantial portion of the tokens, promoting a healthy and sustainable token economy.

Showcase: An Example of $BONUS Distribution Dynamics.

This scenario delineates how a total committed community XP of 500,000 and liquid tokens amounting to $102,500 are allocated among users, reflecting their respective ownership percentages.

Ownership Percentages & Resultant Distribution:

User Rank	Ownership (%)	Community XP	Liquid Tokens	$BONUS Calculation	$BONUS Distribution Results
First User	44%	220,000 XP	$45,100	39,600	20,000
Second User	25%	125,000 XP	$25,625	22,500	20,000
Third User	15%	75,000 XP	$15,375	13,500	13,500
Fourth User	7%	35,000 XP	$7,175	6,300	6,300
Fifth User	4%	20,000 XP	$4,100	3,600	3,600
Sixth User	2%	10,000 XP	$2,050	1,800	1,800
Seventh User	1%	5,000 XP	$1,025	900	900
Eighth User	0.5%	2,500 XP	$512.50	450	450
Ninth User	0.3%	1,500 XP	$307.50	270	270
Tenth User	0.2%	1,000 XP	$205	180	180

Committed Community XP and Liquid Tokens for Each User (example calculation)

First User:

• Community XP: 0.44 × 500,000 = 220,000 XP
• Liquid Tokens: 0.44 × $102,500 = $45,100
• Commands 44% of the pool, contributing 220,000 XP and $45,100 in liquid tokens, translating to a $BONUS allocation of 20,000 after hitting the cap.

Second User:

• Community XP: 0.25 × 500,000 = 125,000 XP
• Liquid Tokens: 0.25 × $102,500 = $25,625
• Holds 25%, with 125,000 XP and $25,625 in liquid tokens, also receiving a capped $BONUS distribution of 20,000.

Third User:

• Community XP: 0.15 × 500,000 = 75,000 XP
• Liquid Tokens: 0.15 × $102,500 = $15,375
• With 15% ownership, contributes 75,000 XP and $15,375, earning 13,500 in $BONUS.

Fourth to Tenth Users:

• Ownership percentages range from 7% down to 0.2%, with corresponding XP and liquid token contributions leading to $BONUS distributions from 6,300 down to 180.