Entropy
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Overview of the User Trading Rewards program.
30.00% of the initial token supply (300,000,000 ENT) will be distributed to all users participating in the Entropy contract transaction in each period (14 days) within five years, and 2,301,369 ENT will be distributed in each period.
Objectives
• Incentivize historical Entropy users to trade perpetual contracts on Entroy.
• Accelerate market liquidity and overall product usage.
ENT will be distributed to traders according to a formula that rewards the combination of fees paid on perpetual contracts and open positions.
The Cobb-Douglas function is used to compute how much ENT is awarded to each trader during each epoch:
Term
Definition
r
R
Total reward to be split between all traders in the pool for the epoch.
f
Total fees paid by a trader in this epoch.
w
${\sum\limits _{n} w_{n}}$
d
A trader’s average open interest (measured every minute) across all markets in this epoch.
k
Total number of traders in this epoch.
α
A constant in the range that determines the weight of fees vs open interest. The initial value is α=0.7.