Rewards Mechanism
10,000,000 Iterative Draft
Lucia Protocol Reward Simulation Report
1. Key Benefits
Incentivizing Early Adopters:
Higher rewards for initial users in the Alpha and Beta phases.
Encourages early engagement and community building.
Sustainable Growth:
Gradual reduction in rewards ensures long-term allocation sustainability.
Flexible Staking Options:
Users can choose between 3-month (1.5x) and 6-month (2.5x) staking for additional rewards.
Incentivizes holding and loyalty while balancing token supply.
Data Quality Incentives:
Users earn rewards based on the quality of their shared data (50%, 75%, or 100% tiers).
2. Reward Schedule
Phase
Duration
Allocation
Estimated Users
Base Reward/User
Tier 1 (50%)
Tier 2 (75%)
Tier 3 (100%)
Alpha
3 months
3,000,000
5,000
600
300
450
600
Beta
6 months
2,500,000
25,000
100
50
75
100
1st Phase
6 months
2,250,000
50,000
45
22.5
33.75
45
2nd Phase
6 months
2,250,000
100,000
22.5
11.25
16.875
22.5
3. Staking Incentives
3-Month Staking: Users earn 1.5x their base rewards.
6-Month Staking: Users earn 2.5x their base rewards.
Example:
A Tier 3 Alpha user earning 600 tokens:
3-Month Staking: Earns an additional 300 tokens (600 x 0.5).
6-Month Staking: Earns an additional 900 tokens (600 x 1.5).
Unused Roll In:
Details above are assuming 100% of participants are 100% high quality data and present entire period of time, which realistically will not occur. If we conservatively expect 60-70% of max to be claimed in each period for eligibility, the amount of tokens available for ongoing phases increases by that margin.
Alpha approx unused: 900,000
Beta phase + previous unused: 3,400,00
Beta approx unused: 1,020,000
While higher incentives are available to users in early periods, lack of eligibility or participation will result in increased rewards for all incoming new users which will gather momentum, and potentially increasing the 70% eligibility claim to higher 80-90%. Review through each phase will be needed to account for and announce.
Alternatively, unused eligibility claims can be added to the entire active group within each phase, resulting in a full allocation usage, but higher rewards bonuses.
Additional possibility would be to take all Alpha phase rollover as incentive funding for Beta+ phases budgets.
Addendum:
Incentive refunding initiative ideas to follow:
Revenue share from B2B clients (TBD)
Unused rollover token allocation budgets
Low tier data un allocation added to multipliers, bonuses, or longer durations
Dex % roll into incentive funding extension
KOL / Advertising campaigns % commission back into extension incentives
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NOTE: Grass positions itself as non invasive but unclear what data they do collect and sell
Protected Personal Data Our philosophy is to protect your device from unwanted usage. It is impossible for Grass to see your personal data or view your activity. Grass is a network for contributing bandwidth and bandwidth only, and is recognized as safe to use by all of the leading antivirus providers.
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Note: Grass utilizes a quality metric process for Nodes, which varies from our process but has overlap in quality metric review
https://grass-foundation.gitbook.io/grass-docs/architecture/grass-reputation-scoring
Each incoming web transaction will be graded on the following characteristics to ultimately assign each Grass node a reputation score.
Completeness: This aspect evaluates whether the data is whole or if there are missing elements. It assesses if the data set includes all the necessary data points for the intended use case.
Consistency: This dimension checks for uniformity in the data across different data sets or within the same data set over time.
Timeliness: This measures whether the data is up-to-date and available when needed.
Availability: This assesses the degree to which the data from each node can be made available.
First draft:
Total Allocation: 8,000,000 LUCIA Tokens
Period Breakdown
Phase
Duration
Allocation (%)
Total Tokens
Reward Distribution
Alpha
3 months
40%
3,200,000
Higher per-user reward for fewer users
Beta
6 months
30%
2,400,000
Moderate per-user reward
1st Phase
6 months
20%
1,600,000
Lower per-user reward as users grow
2nd Phase
6 months
10%
800,000
Minimal reward as adoption scales
Reward Calculation
Base Rewards per User (Dynamic):
Each user’s reward is calculated pro rata based on:
The number of active users during the phase.
Data quality tier:
Tier 1 (50% of the claimable amount)
Tier 2 (75% of the claimable amount)
Tier 3 (100% of the claimable amount)
Staking Multiplier:
Users can stake their rewards for 6 months to earn 2x their original claim.
Staking Rewards Caveat: Total rewards for staking must not exceed the period's allocated tokens.
Reward Schedule per Phase
For example, with estimated user growth (subject to actual adoption):
Phase
Total Tokens
Estimated Users
Average Reward per User
Tier 1 (50%)
Tier 2 (75%)
Tier 3 (100%)
Alpha
3,200,000
10,000
320 tokens
160 tokens
240 tokens
320 tokens
Beta
2,400,000
50,000
48 tokens
24 tokens
36 tokens
48 tokens
1st Phase
1,600,000
200,000
8 tokens
4 tokens
6 tokens
8 tokens
2nd Phase
800,000
500,000
1.6 tokens
0.8 tokens
1.2 tokens
1.6 tokens
Staking Rewards Example
Alpha Phase:
User claims 320 tokens.
Stakes for 6 months: earns an additional 320 tokens (2x original).
Total reward: 640 tokens (fits within the 3,200,000 allocation).
Beta Phase:
User claims 48 tokens.
Stakes for 6 months: earns an additional 48 tokens.
Total reward: 96 tokens.
Key Benefits of this Approach
Early Adopter Incentive:
Alpha users earn significantly higher rewards.
Encourages participation and word-of-mouth growth.
Reward Equity:
Rewards reduce as the user base grows, preserving fairness.
Staking Incentive:
Staking rewards loyalty and retention without exceeding allocations.
Sustainability:
Tokens are distributed in a way that balances early incentivization with long-term value preservation.
Lucia_Protocol_Reward_Simulation
Rewards incentives can be increased after phases with additional reward mechanisms and incentive sources or revenue streams to account for diminishing rewards over time.
Increased allotment budgets can be allocated from additional token budget sources as needed per Ad Attribution - Tokenomics
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