Points System Announcement

Points systems are widely used to provide incentives for desired behaviors. The ScPrime system should be quite good

Points System

Incentives play an enormous role in projects and creating an inviting strategy for communities to play various roles in decentralized networks is key. Points are an ideal mechanism to earn, monitor and distribute rewards in the Distributed Datacenter as there are multiple ways to interact with the project to earn passive or active income. Examples include gaining Storage Credits for personal or business cloud use, leveling up tokens for providing market making liquidity or buying and setting up new Storage Provider nodes on the network.

The program will evolve to cover all of the above and more over coming months, but initially it focuses on market making for the recently listed D2X token and the coming SCP version when it Transports. Providing Liquidity for market making pools is challenging and the ability make and not lose funds is not easy in volatile markets. The result is community often move to providing liquidity in sub-optimal or less helpful ways, defeating the purpose. Adding incentives rewards to the process can turn a slightly unprofitable endeavor into a winning long term strategy.

Strategy and Goals

There will be 2 Seasons initially for LP, each running 6 months and the Points system will begin on 4/1/2024 to allow everyone in the community to get in. LP stakers who participated back to 2/21/2024 will qualify for a special Points bonus outside of the first Season. A snapshot will be taken on 9/30/2024 to finalize and distribute Points earned in Season 1.

Time-points are budgeted from a set pool amount and distributed on a per 30 day basis. The budget for month one will be distributed to all of the points earners in that period. As more liquidity is provided that is eligible for points, the budget for a period is spread out to more participants. A project leaderboard is under development that will assist you in understanding where you are in points acquisition.

The program works on a Time-Points basis where every hour, all staking positions are evaluated and assigned points earned. We cover all pools available which today includes Orca and Raydium. We expect to add Meteora and others as they become available. There are minimums on the amount of daily volume to earn points on new pools. Positions must be in-range to earn points and liquidity with higher leverage will be awarded more with boosts. The goal is to gain significant liquidity as close to the bid/ask of any swap to prevent large slippage on nearly any size order.

To incentivize tighter liquidity ranges, there will be boosts for posted range sizes. As an example, a boost can provide additional points for a range that is within 5% on both sides of the orderbook with a graded scale and smaller boosts for wider ranges. Additional boosts are available for stablecoin pools that directly lead to price discovery.

Get started today for the launch on April 1st. Simply join one or more LP pools and make sure you load up balanced liquidity to ensure you get solid points returns.

The Points System leaderboard and account will go live in the XNS Console over the next few weeks, stay tuned for a follow up announcement.