> For the complete documentation index, see [llms.txt](https://reitcircles.gitbook.io/whitepaper_v1.0.0/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://reitcircles.gitbook.io/whitepaper_v1.0.0/token/ispo-bonus-rewards.md).

# 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.

{% hint style="info" %}
**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.**
{% endhint %}

## Time based reward Distribution

![](https://4199744630-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpOZS1e8TgIjQkJFsm2MF%2Fuploads%2FJ7iZDg3DEQK9B6wWdlQz%2Fispo_rewards.png?alt=media\&token=51400376-4a63-4846-8789-091d13929c34)

#### 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

![](https://4199744630-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpOZS1e8TgIjQkJFsm2MF%2Fuploads%2FqrRFqvsI8qNTYnThCPf9%2Flagrida_latex_editor.png?alt=media\&token=05342402-0880-4e25-b36f-b4a0805486a4)

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