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How are rewards and bonuses calculated?
How are rewards and bonuses calculated?
Written by Katya Zavyalova
Updated over a week ago

To challenge a POI, the challenger must submit a stake of FOAM tokens greater than the minimum and up to a maximum of the amount staked by the owner on registration of the POI. The amount of the reward pool given as a bonus or as a reward is set by the core parameter “Reward Percentage”.

Currently, the Reward Percentage is set to 60/40.

• 60% is bonus sent to the winner

• 40% is the reward sent to voters

The following example illustrates how the redistribution of FOAM is calculated:

1. A cartographer registers a POI with a stake of 100 FOAM tokens.

2. The minimum stake is 50 FOAM, so a challenger can choose to stake anywhere between 50 and 100 FOAM.

3. Someone notices the POI has recently closed and challenges it with 75 FOAM.

4. This makes a reward pool of 75 FOAM, equal to the challenger’s stake.

5. The challenger wins and receives back 120 FOAM: a 45 FOAM reward (60% of 75) in addition to their 75 FOAM challenge.

6. Let’s say there were 10 voters who each voted with an equal 1 FOAM vote.

7. Each voter would receive a reward of 3 FOAM from the 30 FOAM remaining for redistribution.

8. The remaining 25 FOAM in the POI is returned to the owner's wallet in MetaMask after it has been removed from the map. This is remaining because the challenge was 75 FOAM and did not fully match the owner's original 100 FOAM stake and so was not up for redistribution.