Reward System Implementation on Splendor

This document outlines the comprehensive implementation plan for a dynamic, multi-tier, multi-level marketing (MLM) reward system for node operations on the Splendor EVM chain. The system incentivizes node operation and network growth by adjusting rewards based on participation levels, reliability, and staking commitments.

1. Initial Token Allocation

• Total Allocation: 60,000 SPL tokens
• Purpose: Distributed to early investors and reserved for treasury to fund operations and future growth initiatives.

2. Node Tiers and Staking Requirements

3. MLM Reward Structure

The MLM structure provides bonus rewards based on recruitment up to 3 levels:

• Level 1 (Direct Recruits): 100% of their tier’s return goes to the recruiter
• Level 2: 50% of annual earnings goes to the original recruiter
• Level 3: 25% of annual earnings goes to the original recruiter

Participation:

• Invite-only via unique referral link
• Link connects new node to sponsor in smart contract

4. Dynamic Reward Pool

• Token Minting: Only nodes that are staking and actively participating can mint new tokens.

• Reward Calculation:

Monthly Reward = (Dynamic Reward Pool × Staked Tokens × Target Annual Return Rate) × (Active Time in Seconds / Total Seconds in Month)

5. Implementation Strategy

• Smart Contracts:

  • Handle staking logic
  • Manage tier-based rewards
  • Track referral relationships
  • Calculate dynamic rewards

• Integration & Monitoring:

  • Integrate with node software
  • Monitor node uptime and reward eligibility in real-time

6. Security and Compliance

• Security Audits: Full audit of smart contracts and operational logic
• Legal Compliance: Ensure the invite-only MLM structure is transparent, fair, and adheres to regulations

7. Reward Distribution and Block Time

• Block Time: 2 seconds per block
• Distribution: Monthly, based on uptime and active participation

Status: In Development