ISPO Bonus rewards

Description of how the Bonus tokens are calculated

The Bonus rewards is meant to incentivise the time staked and amount staked with the ISPO pools.

The more ADA you delegate and the longer you delegate to the ISPO, the more you will earn REIT tokens. This is what is incentivised by the bonus reward scheme.

Time based reward Distribution

Region A

In this first phase 10% of the rewards will be reserved and eligible for delegators who have delegated for at least 34 epochs to the REIT stake pools (minimum: 500 ADA)

Region B:

In the second phase 20% of the rewards are allocated for delegators who have delegated for 44 epochs or more. (minimum: 500 ADA). Total bonus rewards allocated for this segment is twice that of Region A.

Region C

In the last phase 70% of the total rewards will be distributed for delegators who have delegated for 44+ epochs (In case we need to extend beyond these number of epochs due to still outstanding REIT tokens remaining). (Minimum delegator: 500 ADA). Total bonus rewards allocated for this segment is 7 times that of Region A.

In summary let us take an example.

Let's say total rewards is 100M then in region A will contain 10M, region B 20M and region C 70M.

Amount based reward Distribution

Now the total amount of rewards are stacked according to the amount of ADA staked per region.

Category	Description
Greater than or equal to 10K ADA	1x. So only yellow region in Fig 1.
Greater than or equal to 20K ADA	2X. YELLOW + GREEN SLABS eligibility.
Greater than or equal to 70K ADA	3x. YELLOW+ GREEN+BLUE SLABS eligibility

Example to elaborate:

For region A: Say according to time allocation above, the total rewards are 10M REIT tokens. Now the unit of distribution is determined as follows

Hence following are the rewards to be given to the delegators.

1. 1X delegator will get rewards = Unit of rewards

2. 2X delegator will get rewards = 2* Unit of rewards

3. 3X delegator will get rewards = 3* Unit of rewards

Concrete example

Total reward allocated for region A : 14 M REIT

Region	Category	Delegator number
A	1 X (delegation up to 10K)	50
A	2 X (delegation up to 20K)	30
A	3 X (delegation gt. eq 70K)	10

Unit of rewards = 14,000,000/(50+2*30+3*10) = 100,000

Hence:

1 X participant gets: 100,000 REIT rewards

2 X participants gets: 200,000 REIT rewards

3X participants gets: 300,000 REIT rewards

Thus if we add up all the rewards: 50*100,000 + 30*200,000 + 10*300,000 = 14 Million