SX Network
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SX Network

Bet Mining 2.0

Making bet mining more responsive to betting volume

Both SportX betting volumes and the SX token have experienced rapid growth in 2021. Bet mining has been a big factor in driving volumes and community engagement as the unique token distribution strategy gives SX directly to the users of the platform.

However, the first iteration of bet mining has had some issues. The fixed, inflexible nature of the original bet mining system has sometimes lead to situations where bet mining becomes overly attractive to wash traders and not attractive enough to real users. While we’ve banned wash trading bets from counting, there should be a more permanent solution. With that said, we’re excited to announce the launch of Bet Mining 2.0.

Bet Mining 2.0

In this updated version of bet mining SX tokens are still paid out on a weekly basis to users as a function of their total winnings from that week. The change is the amount SX paid out all bettors is variable.

Currently 100,000 SX are paid out each week regardless of the amount of winnings and bets placed on the site. Meaning if betting volume is high and the SX token price low then real betting users are not earning much ownership in SportX through betting and would be better off buying the token. If betting volumes are low one week, then the users who do bet are earning a disproportion stake for lower participation.

Bet Mining 2.0 solves this by making the amount SX paid out each dynamic based on betting volumes, in particular bet winnings. The calculation is as follows:

  • Total weekly winnings * 4% =Max fees generated for community fund
  • Max Fees/0.75 = $ Value of SX tokens to pay out
  • $ Value of SX to pay out / price of SX at end of week = # of tokens paid out

Note: 0.75 was used so SportX bettors will earn SX tokens at a 25% discount to market price. This discount is warranted given that the tokens are locked for 2-weeks and because betting on the site drives liquidity to the exchange.

In this model there will be a weekly limit of 150,000 SX paid out, as a way of limiting inflation. But the amount of SX actually released via bet mining will vary based on weekly winnings.

Example calculation

For example, this week SportX is on pace to do about $1,000,000 in winnings, and the current market price of SX is $0.80. Using the above formulas you get:

$1,000,000 * 4.00% = $40,000
$40,000 / 0.75 = $53,333
$53,333 / $0.80 = 66,666 SX

Meaning if everything stays constant 66,666 SX will be issued this week via bet mining. This will make bet mining more sustainable while still giving bettors control of the SportX protocol.

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SX Network scales Polygon for betting, DeFi, and NFT applications.

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SX Network

SX Network

SX Network — Scaling Polygon for betting, DeFi, and NFTs

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