A key feature of the V3 PoolTogether Protocol is the ability to reward users both based on their deposits and the deposits they refer. This has been a long requested feature. For more info on this read the “rewards” section of the documentation
Balance drip is defined as the rate the token drips per second. To make it easy to reason about, we should think of this as seconds in a week. There is 604,800 seconds in one week, if we want to drip out 1,000 bonus tickets to depositors each week then we would set the balance drip rate to 0.0016534.
Balance drips can be thought of as effectively offering a guaranteed rate of return for depositors. If a prize pool has 100,000 tickets outstanding and a $1,000 per week balance drip the effective annualized APR is 52%, at 1,000,000 tickets outstanding the effective annualized APR is 5.2%.
Referral Volume Drips:
This drip rewards people who refer volume to the pool over a given week. It is not accrued per second, rather it is calculated at the end of a time period. So if $50,000 in new deposits are done in one week and half of those deposits were done through your referral link you would get 50% of the the weekly referral drip rewards.
Referral drips are game-able in that you can use your own referral drip to capture referral rewards. For this reason it makes sense to keep them relatively low. To start, matching the referral drip reward to the balance drip reward makes sense. Setting them both at $1,000 (disbursed as tickets)
I’m proposing providing a $1,000 (in tickets) per week to balance drip and $1,000 (in tickets) per week to referral volume drips. These subsidies should be provided equally for 8 weeks to the initial Dai prize pool. After 8 weeks the community can decide to continue these drips by funding them from a portion of interest accrued or some other mechanism.
The total cost of the initial 8 week bootstrap period is is $16,000 which will be funded by the PoolTogether core team to bootstrap.