Incentives on Reya Network — Seasons, Ranks and XP
[This post was updated on June 18, 2024]
TL;DR
The incentive mechanism is designed to reward those who consistently contribute to the success of Reya Network in the most equitable way possible. To achieve this outcome there are three core concepts to be aware of — Ranks (and Seasons), XP and boosts.
Ranks are adjusted based on earned XP compared to other users. Every week, users can be levelled up, levelled down, or maintain their Rank based on weekly XP accumulation relative to others in their Rank. For example, if you were in Rank 3 and ended the week in the top 10% of Rank 3, you’d be promoted to Rank 2. Conversely, if you were in Rank 3 and ended the week in the bottom 10% of Rank 3, you’d be demoted to Rank 4. What’s nice about this mechanism is week-on-week you don’t compete against whales to come top, but instead compete against people of similar Rank.
Seasons correspond to the time between Rank snapshots, during which Ranks are not final.
- The first Season — Season OG, Delos — started at the LGE and will conclude at the end of June 2024. The next Season will start on 1st July 2024.
- Rewards are determined at the end of the season based on the Season’s snapshot of your Rank, as well as your XP.
XP is earned through three activities:
- Trading — by creating a position on any DEX deployed on Reya Network, users earn XP proportional to their Open Interest per minute, and temporarily also on their trading volume.
- Network Staking — by staking capital into Reya Network, which is passed into the passive LP pool, users earn XP proportional to their staked capital per minute.
- Referrals — 10% of the XP gained by those you refer will be added to your XP value. So if 5 wallets use your referral link and each gain 100 XP, you will be credited with an additional 5x100x10% = 50 XP
Boosts can be earned through various activities and increase the amount of XP earned or accrued through a particular mechanism. They provide a way of rewarding special or early contributions, keep engagement, or boost incentives generally if needed without changing the basic mechanisms directly.
Overview
The incentive mechanism on Reya Network is designed to rewards those that consistently help the project grow as equitably as possible. This is achieved by having three core mechanisms — Ranks (and Seasons, XP, and boosts.
Users on Reya Network are assigned Ranks based on accumulated Experience (XP). Rewards are determined at the end of the Season based on your Rank and XP. However, only special, pre-announced snapshots of the Rankings will be used, meaning your Rank on the intermediate weeks (the ‘Season’) is only provisional. Let’s explore Ranks and XP and how they unfold in the upcoming “Season OG — Delos”.
What are Seasons?
Seasons take place over multiple weeks. Season OG started at the LGE and will end on 30th June 2024. Within Season OG there is a Rank Reveal Event — which defines your starting Rank — and weekly ranking events where you can level up or level down your Rank. If you’re looking to maximise rewards, the objective is to finish the season at the highest rank — Rank 1 (Alpha) — with the most XP possible.
What are Ranks?
Ranks are used to determine rewards and voting power for governance votes (in the short term). What matters is your finishing Rank at the end of the Season. To progress through Ranks you must earn XP relative to other users, so you can improve your Rank at each Weekly Ranking Event.
Rank Reveal Event (RRE)
The very first Ranking was unveiled at the Rank Reveal Event during Season OG the RRE, on the 27th May 2024 @ Midday GMT.
The Rank Reveal Event was used to determine the starting rank of a OG users. This starting Rank is distributed based on XP acquired within a Season before the Rank Reveal Event. And was done according to the following distribution:
The top 2.5% of users were be allocated Rank 1 — Alpha(α), and the bottom 8% got Rank 10 — Kappa(κ). The rest were be distributed according to their XP position relative to other users, as per the distribution above. There is a natural skew towards lower ranks to ensure that only the top contributors can be promoted to Rank 1 — Alpha(α).
Weekly Ranking Events
This is the opportunity to level your Rank up (or down). The weekly ranking event will occur each Monday @ Midday GMT after the RRE. At the Weekly Ranking Event, the top and bottom 10% of wallets per Rank are levelled up or down, as illustrated in the image below:
Users will level up or down based on their XP at the end of the week, relative to others in their Rank. What’s nice about this mechanism is that week-on-week users will compete with other users of similar rank to come top vs. a broader leaderboard where one may compete against whales week-on-week to come on top.
You can see information on the current Rankings on the Reya Network Leaderboard.
What’s XP?
XP is earned through three activities and is used alongside Ranks to determine rewards at the end of the Season:
- Trading — by creating a position on any DEX deployed on Reya Network, users earn XP proportional to their Open Interest per minute, and temporarily also on their trading volume.
- Network Staking — by staking capital into Reya Network, which is passed into the passive LP pool, users earn XP proportional to their staked capital per minute.
- Referrals — 10% of the XP gained by those you refer will be added to your XP value. So if 5 wallets use your referral link and each gain 100 XP, you will be credited with an additional 5x100x10% = 50 XP
What are Boosts?
At particular times, for example during the Liquidity Generation Event (LGE), there’s the opportunity to earn XP Boosts. This means the XP grows at a faster rate. With a 10X boost, a Network Staker earns 1 XP * $1,000 * 10x Boost = 10 XP per minute.
Boosts provide a way of rewarding special or early contributions, to keep engagement, or to boost incentives generally if needed without changing the basic mechanisms directly.
Some boosts are temporary, some are longer term. For the LGE, this has both 48 hour boosts and an initial long-term boost that you locked in per tranche of capital deployed. If any liquidity is withdrawn, you permanently lose the long-term boost it originally earned, and so the wallet address will grow XP at a slower rate.
XP will not be lost if funds are withdrawn or trades are closed, but with other users continuing to gain XP, you’re at risk of levelling down at the Weekly Ranking Events.
Learning more
To learn all the details of how the Reya Incentives Program works, check our documentation:
