Bribes

The dual token model of the WINR Protocol incentive structure is designed to drive volume routed through the WLP, thus ensuring the WLP has steady revenue thanks to its mathematical edge. Players are incentivized to play through the games connected to the WLP as they are rewarded vWINR on each transaction.

To ensure WINR/vWINR has steady income and value, the WLP pays a portion of each input currency amount as bribes to the protocol on each transaction that starts a game, regardless of the outcome. This mechanism is called Bribes.

The bribes mechanism has a multiplier that changes in each epoch and ranges between 0.0075x (0.75%) of the input currency amount to 0.0125x (1.25%) of the input currency amount. The multiplier in each epoch depends on the revenue of the WLP to ensure it stays healthy.

For example, let's assume the bribe of the current epoch is 0.003x. A player performs a transaction with a value of 0.1 wETH. The WLP contract will be called to pay 0.0003 wETH as a bribe in the same transaction.

The bribes mechanism can only be called through the transactions initiated by the game contracts.

Bribes Formula

If the WLP lost assets in the previous epoch.

\text{Staking Reward Percentage}=\text{Previous Staking Reward Percentage}\:\times\: \big(1 + 2\:\times\: \text{% Change in Bankroll} \big)

If the WLP earned assets in the previous epoch.

\text{Staking Reward Percentage}=\text{Previous Staking Reward Percentage}\:\times\: \big(1 + \:\times\: \text{% Change in Bankroll} \big)

The WINR DAO governs the ranges of the bribes mechanism and cannot be increased to more than 0.01x, half of the median edge of the game contracts connected to the WLP.

Bribes Distribution

• 60% of the bribes collected are distributed to the vWINR staking/vesting pool

• 20% of the bribes collected are distributed to the buyback and burn address

• 20% of the bribes collected are distributed to the core developers

Staking

Bribes are routed to the Rewards contract in each transaction. The Rewards contract has a function that purchases WLP with the tokens accumulated in it and distributes it to the vWINR staking/vesting pool. Token holders with a staked position in this pool can claim their WLP tokens anytime. The WLP price continues accumulating as the tokens are now a part of the liquidity pool.

5% of the WINR supply is allocated as vWINR to reward the early staking program. The rewards contract mints vWINR to the staking pool proportionally to the annual percentage rate WLP generates to the staked WINR/vWINR principal.

There is a burning fee of 0.5% for unstaking vWINR/WINR.