Round Robin Explained
A portion of compounding rewards are distributed in a round robin fashion to qualifying accounts.
- Compounding generates a 5% reward that is paid in an "upline" fashion, one level per compound, for 15 levels.
- Upline wallets reside above your wallet.
- To qualify for the 5% compounding rewards, an upline wallet must contain the required USD value of BOND tokens or the required Legacy NFT.
- When you make your first compound, the 5% reward is paid to your direct upline, assuming they hold at least $250 worth of BOND or a Silver NFT.
- The 5% reward is based on the amount ARKFI available to compound.
For example, if you have 1 ARKFI available, the reward would be:
- 1 $ARK x 5% = 0.05 ARKFI reward
- The above process repeats itself for each compound upwards through 15 levels.
- If a wallet has less than 15 wallets in its upline, the 5% reward is paid to the Guardian Wallet when each empty level above the Guardian Wallet is reached.
Round Robin scenario with the Guardian Wallet in 3rd upline Position
- Each day, 50% of the Round Robin rewards sent to the Guardian Wallet will be added to a spARK Rewards pool.
- Qualifying wallets will be randomly drawn each day and the winners will receive a portion of the rewards pool.
Qualifying wallets are randomly drawn using an Ark Fi VRF (Verifiable Random Function), a provably fair random number generator.
- The ARKFI will be added to the winning wallets as a “referral reward” and positively impact their NDV.
- The number of winners will vary based on the size of the spARK Rewards pool.
- To qualify for a chance to win spARK Rewards, wallets must have an active Ark Vault account with one of the following:
- Enough BOND staked to qualify for Level 1 referral rewards ($250 worth of BOND)
- Hold a Legacy NFT
spARK Rewards provide a chance to share the daily compound rewards with those supporting the protocol while discouraging negative strategies like ghost compounding and inline wallet stacking to avoid the Guardian Wallet.