Making All Players Winners
The new PoolTogether ensures all players earn a return even if they don’t win a prize. This is done though “Deposit Rewards” and “Referral Rewards”.
How Deposit Rewards Work
Deposit rewards are distributed by the second and are evenly split among all depositors. As soon as you deposit, you’ll instantly start earning them!
Currently, $1,000 in deposit rewards are distributed per week. This means right now all depositors are earning an effective 4.06% return on their deposits (based on the current $1,280,000 total deposited). If total deposits go down the effective APR goes up, if total deposits go up, the effective APR goes down but the prize grows in size!
You can see your deposit rewards accruing in the “Rewards” section of your account. They accrue as “Dai Tickets” which like all tickets are redeemable 1:1 for Dai.
For the prize to grow it needs to be shared! Referral Rewards make sure people have a reason to share!
Currently, $1,000 of referral rewards are distributed at the end of each prize period. You earn them by sharing your unique referral link found on your account page.
The rewards are distributed based on the percent of that week’s deposited you referred. For example, if $100,000 in total was referred in a given week and you personally referred $5,000 of that, you would receive 5% of the referral rewards for that week equaling $50 of value.
The rate of reward distribution and type of rewards distributed can be adjusted by protocol governance. The initial rates of $1,000 in deposit and referral rewards will last until December 17th, 2020. At that point governance will need to determine what rewards to set and how to distribute them.