Today, version 2 of KALAM rewards for transactions on the Kalamint platform went live which included some major modifications to the way we approach rewards and the impact it has on our users.
After distributing rewards for 5 months (March — August), we realised two drawbacks of the original algorithm.
They were:
1. Large one-off transactions were being disproportionately rewarded with the bulk of the weekly rewards.
2. No correlation between the actual platform usage and the quantum of weekly rewards being distributed.
This was highlighted to us in the past few weeks by our community members as well as by some of our advisors.
We have addressed both the drawbacks with an update to the algorithm that computes the rewards to reward everyone fairly without the bulk of rewards being distributed to certain wallets.
What hasn’t changed:
The total quantum of weekly rewards to stay at 33,333.333 KALAM.
What has:
The formula used for the calculation of rewards to represent fair usage of the Kalamint platform. Some weeks, we may have the whole quantum of 33,333.33 KALAM being distributed and some weeks, we may have fewer than the total number. The KALAM tokens that don’t get distributed that week, will be burned at the Crunchy Fire Pit contract.
How are the rewards calculated now?
Rewards distribution in v2 is a two-step process.
Step 1
We take the entire transaction dataset for the week for mints, buys and sells (each as an independent dataset) and we calculate the standard deviation for each of the datasets separately. Once the standard deviation is determined, we determine the outliers from the standard deviation, and we cap the rewards for these outliers to the value of the standard deviation. The rest of the transactions which is within normal distribution, will not be capped.
What that means is, if we have any outliers (abnormally large transactions between many wallets repeatedly for example), the rewards that would accrue to these outliers will be redistributed amongst the rest of the wallets.
So, if there are any bad actors that may indulge in high-value circular transactions just to receive rewards, they will be inadvertently increasing the KALAMs received by the rest of the community.
Step-2
Once the standard deviation is determined and the transaction values are normalised, the quantum of KALAMs to be distributed is computed.
In this step, we compute the fees collected on the platform during the corresponding reward period and multiply it with a factor of 1.5 and the price of KALAM for the period to arrive at the distribution quantum for the week.
(In essence, the Kalamint fee incurred while buying or selling a piece multiplied by 1.5 in dollar value equivalent rewarded as KALAM)
If the quantum exceeds 33,333.33 KALAM, it is capped to the highest, which is 33,333.33 KALAMs. If lower, we distribute the computed quantum and burn the remainder.
For example, the rewards distributed on 6 September (Monday), these were the numbers.
- Total rewarded KALAM: 6621.468951136362 KALAM
- Total burnt KALAM: 26711.86104886364 KALAM
(https://better-call.dev/mainnet/opg/oo2tyrZcZUpNGmNpSxdanK4jSt2hKeD8fXKoJBAwZHGcSaEgy7C)
If you have any questions or doubts, reach out to us at our Telegram Support Channel or our Discord server for help.
Kalamint, a leader of the Clean NFT movement is one of the first marketplaces on Tezos, an LPoS blockchain that consumes a fraction of the energy compared to its power-hungry counterparts. Backed by Tim Draper’s Draper Goren Holm Ventures, Amesten Capital, Moonwhale Ventures among others, Kalamint is one of the only NFT marketplaces which is truly on-chain, meaning that the data on the chain can never be altered or lost.
You can stay updated by following us on Twitter, Telegram, or Discord. Check out our tutorials page on YouTube.
