Abacus.wtf 🧮
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Abacus.wtf 🧮

Abacus secondary reward system: Plan B

During an appraisal session for the Pudgy Penguin x Gossip Goblin NFT (results found here), the final appraisal value was 23.227 ETH. The two closest appraisals were 26 ETH and 20 ETH, and with a spread (allowed margin of error) of 10% and these two appraisals, along with all others, are out of range. Therefore, nobody was rewarded for their participation in appraising the NFT. In the United States of Abacus, Plan B acts the same way as it does IRL. Imagine, Pepe and his E-girl had a nice time one night but didn’t finish with the result they wanted so they need Plan B. Abacus takes this same attitude. If a session completed and everyone had fun appraising but nobody finished with the result they wanted, they need a Plan B to act as a “safety net” reward system.

Current Reward Structure

The current reward allocation structure in a pricing session begins in the harvest stage. When a user harvests, Abacus checks the user’s accuracy based on the protocol-wide spread and gives a user the amount of points they’ve earned based on the tier that they’re in. For example, Alice appraises an NFT at 101ETH in a session in which the spread is set at 10 and the final appraisal value comes out to 100ETH. Therefore, Alice is 1% off of the final appraisal value and she’ll receive 10 points towards her “base” value (where we store her level of accuracy). The amount of tiers in a session is dependent on the spread value. If the spread is 10, there are 10 tiers of points that can be earned (10 being the highest, 1 being the lowest) for any correct appraisals. Anyone who is outside of this spread range receives a base of 0 which means they are not eligible for rewards and their stake will be harvested at the rate of:

(margin of error — spread%) * risk factor

The amount harvested is then added to the session specific profit pool alongside the bounty that was offered at the creation of the session. At the conclusion of the harvest stage, any rewards can be claimed based on the tier of accuracy and weight of the stake submitted. With this method, the protocol rewards a constant level of accuracy, but this leaves sessions open to having no winners. This is where Plan B comes in.

What is Plan B?

Plan B offers a safety net for any session with no winners. While the final appraisal is being set, Abacus calculates a final standard deviation value based on the restrictions set by the defender. Using the standard deviation, in the harvest stage, Abacus does a second calculation to see if any appraisals that missed the spread range, fall within one deviation of the final appraisal value and keeps note of that in the form of Plan B point count. The Plan B points received by each user is binary and dependent on their stake amount. In other words, there is no tier system for Plan B rewards, an appraisooooor is either within the limit or not and the amount of points they receive is equal to their stake amount. While everyone’s appraisals are being harvested we’re left with an aggregate number of the total stake by Plan B winners (used to give out the reward proportionally in the claim stage). When it’s time to claim rewards and nobody is within the spread mark, Abacus checks the Plan B value to determine if an appraisooooor is eligible for rewards. Plan B winners receive a reward according to the final formula:

total profit * appraisooooor stake amount / total Plan B winner stake amount

Therefore in a case like the pudgy penguins or any unique NFTs that may be more difficult to appraise, even if an appraisooooor may not have complete confidence of being within spread range of the final value, Plan B will be there to catch and reward the best appraisooooors in a session.

Example:

If you’re still confused not to worry we’ll provide an example below:
Imagine four appraisooooors participate in a session to appraise a Bored Ape; Alice, Bob, Charlie, Denise. Their appraisals fall out as follows:

  1. Alice: stakes 0.005 ETH and appraises at 100ETH
  2. Bob: stakes 0.005 ETH and appraises at 200ETH
  3. Charlie: stakes 0.005 ETH and appraises at 300ETH
  4. Denise: stakes 0.005 ETH and appraises at 400ETH

After voting concludes, the final appraisal value will be 250ETH. With a 10% spread the range of collect values would be 225ETH — 275ETH and none of the participants are within that range. However, the final standard deviation of this session would have been calculated to be ~129ETH. Therefore, Bob and Charlie are eligible for a Plan B reward since the range of correct appraisals is now expanded to 121ETH — 379ETH. As a result, they’ll split the harvested rewards evenly while Alice and Denise will not receive anything!

Conclusion

The goal of Plan B is to create a more dynamic reward system in the United States of Abacus. Furthermore, it is to encourage participation in higher variation sessions since there is no longer a need to be within a set range of the final appraisal value but rather the requirement is to be the best appraisooooor, as it should be!

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Abacus is an NFT valuation protocol.

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