# 8.1 Bonus Pool System

Through game revenue, tax systems, and platform regular investments (such as season launches), the bonus pool will be ensured to remain full, while a diversified prize system will incentivize the fulfillment of players' varying needs. This design achieves:

（1）A consumption-value feedback loop for players;

（2）A multi-dimensional self-sustaining mechanism ensuring the sustainability of the bonus pool;

（3）Stimulating ecosystem participation and asset liquidity, forming an economic positive-negative feedback loop of "consumption – incentive – re-circulation."

1. **Diversified Bonus System**: Supports multiple asset incentives to meet players' varied demands:

* Ecosystem Points (used to exchange resources/NFTs/governance tokens)
* USDT (stablecoins, to attract external players)
* NFT (rare skins, cards, etc.)

2. **Bonus Sources (Sustainable Economic Model)**

| Source                      | Description                                                                                                                             |
| --------------------------- | --------------------------------------------------------------------------------------------------------------------------------------- |
| **Tax Revenue Share**       | 30% of the tax revenue is injected into the prize pool.                                                                                 |
| **In-App Purchase Revenue** | 20% of the sales revenue from Era Passes, NFT skins, and other items is directed into the prize pool.                                   |
| **Player Spending**         | <p>This includes:<br>• Tournament registration fees (30%-50% enters the prize pool)<br>• Card upgrade fees<br>• chest opening fees用</p> |
| **Official Funding**        | The platform will periodically inject funds (e.g., to replenish the prize pool at the start of a season).                               |

3. **Prize Pool Types (Tiered Incentives)**\
   (1) **Tiered Incentives** | There are four types of events: Limited, Elite, Hero, and Legendary. Each event uses different reward allocation ratios based on the level. Before the server is upgraded to the corresponding era, the prize pool for that level will continue to accumulate and will be released uniformly once opened.\
   (2) **Leaderboard Prize Pool** | Global smooth decay merit algorithm (to be released in the first official update). The global smooth decay merit algorithm ensures a fair and sustainable merit distribution, with different levels of the arena distributing different proportions of the prize pool.

**Funding Sources**: 30% of the seasonal transaction tax + the official base amount \
**Influencing Factors**: Average player level, season rank, rank range.\
**Distribution Algorithm**: "Global Smooth Decay Merit Algorithm"

**Distribution a**: The top 50% of players share 60% of the merit pool \[with the highest and lowest prize differences being less than 10x] to avoid monopoly by top players.\
**Distribution b**: The top 50% of players are weighted by their average participation level and receive 20% of the merit pool to balance technical differences.\
**Distribution c**: The bottom 50% of players share 20% of the merit pool (no single player will exceed the 50% lowest prize). Any unallocated portion will be carried over to the next season's prize pool.\
This model uses three dynamic adjustments:

1. Reduces the Matthew Effect.
2. Encourages participation across all ranks.
3. Automatically balances prize pool liquidity, creating a long-term stable competitive ecosystem.

**Global Smooth Decay Merit Algorithm Formula**:

<figure><img src="https://2689269037-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FZw7KOjSk0887ikCsWQDX%2Fuploads%2F6wm53AwVrpW3fDo2xZrN%2Fimage.png?alt=media&#x26;token=aac66f2c-53c9-4778-9a68-c638433f5842" alt=""><figcaption></figcaption></figure>

(3) **Tournament Prize Pool (Official Version Second Update)**

**Daily Prize Pool:**

* **Funding Source**: 70% of the registration fee + season set amount
* **Distribution Rule**: Assets from the prize pool are distributed according to rankings.

**Weekly Prize Pool:**

* **Funding Source**: 70% of the qualifying registration fee + 15% of the weekly transaction tax + official contribution (e.g., 1,000 USDT).
* **Distribution Rule**: Assets from the prize pool are distributed according to rankings.

(4) **Guild Tournament Prize Pool (Official Version Third Update)**

* **Funding Source**: 15% of the transaction tax every 4 seasons + guild battle registration fees + official contributions (e.g., USDT, NFT rewards).
* **Distribution Rule**: See Guild System - Guild Battles for detailed distribution rules.

(5) **League Prize Pool (Cross-server/Annual Championship) (Official Version Second Update)**

* **Funding Sources**:
  * Club slot auctions
  * Event ticket sales, betting prize taxes
  * In-game purchases
  * Player transfers and league taxes
  * Multi-season transaction tax (20%)
  * Sponsorship and commercial income
  * Player crowdfunding (e.g., NFT auction revenue sharing)
* **Distribution Rule**: Distribution according to league rankings.
