📦Delegate Pool

Delegate Pool and Its Reward Structure on Volume.li

The Delegate Pool on Volume.li is a smart contract that acts as a secure mechanism for users to lock up their $VOLUME holdings. By participating in the Delegate Pool, users can earn rewards from the revenue generated by Volume.li’s services. Here's how it works in detail:

How the Delegate Pool Works

1. Locking Tokens:

   • Users can lock their $VOLUME tokens in the Delegate Pool for 30 Days.

   • Once locked, these tokens cannot be withdrawn until the lock-up period ends.

2. Reward Generation:

   • Volume Generation Fee: 10% of every volume generation fee on Volume.li is used to buy $VOLUME from the market. This bought $VOLUME is then distributed to the Delegate Pool.

   • Non-Holder Fee Distribution: If a user of Volume.li's services is not a $VOLUME holder, 20% of their volume generation fee is used to buy $VOLUME from the market and is also distributed to the Delegate Pool.

3. Reward Distribution:

   • The rewards are distributed proportionally based on the amount of $VOLUME each user has delegated to the pool.

   • The more tokens a user delegates, the higher their share of the rewards.

Reward Calculation Example

Let's consider an example where the total reward to be distributed in the pool is 1,000,000 $VOLUME tokens. The delegation amounts and corresponding rewards for each user would be calculated as follows:

1. Total Delegated Tokens:

   • User A: 100,000 $VOLUME

   • User B: 50,000 $VOLUME

   • User C: 30,000 $VOLUME

   • User D: 20,000 $VOLUME

   • Total: 200,000 $VOLUME

2. Reward Share Calculation:

   • User A: ( \frac{100,000}{200,000} \times 1,000,000 = 500,000 ) $VOLUME

   • User B: ( \frac{50,000}{200,000} \times 1,000,000 = 250,000 ) $VOLUME

   • User C: ( \frac{30,000}{200,000} \times 1,000,000 = 150,000 ) $VOLUME

   • User D: ( \frac{20,000}{200,000} \times 1,000,000 = 100,000 ) $VOLUME

In this scenario, User A, who delegated the most tokens, receives the highest reward.

Benefits of the Delegate Pool

1. Stabilizes Token Price:

   • By using part of the volume generation fees to buy $VOLUME from the market, the Delegate Pool helps to stabilize and potentially increase the token price.

   • This mechanism reduces the available supply of $VOLUME in the market, leading to potential price appreciation.

2. Rewards Long-Term Holders:

   • Users are incentivized to lock their $VOLUME tokens, which provides them with regular rewards.

   • This promotes long-term holding and reduces market volatility.

3. Encourages Platform Usage:

   • Project owners and users are encouraged to use Volume.li’s services and participate in the Delegate Pool, enhancing the platform's overall activity and growth.

4. Aligns Incentives:

   • The reward structure aligns the interests of $VOLUME holders with the success of Volume.li, as more usage leads to higher rewards for delegators.

Summary

The Delegate Pool on Volume.li provides a secure and rewarding way for $VOLUME token holders to lock their tokens and earn additional rewards. By using the volume generation fees to buy and distribute $VOLUME, the Delegate Pool not only rewards participants but also helps stabilize the token price and encourages long-term engagement with the platform.