How does that ASTOR loyalty payout system work?
Every month ASTOR distributes the pool rewards that were not needed to it's loyal delegators.
The rational behind it is that 6 x 340 => 2040 ADA p.m. pool reward is much more than we actually need to run our infrastructure and we would therefore like to give back to folks who support our project ...
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... despite knowing that they would get more ROA when delegating to a much larger pool.
It took a while to put this idea into practise, because I wanted to do this in Haskell so that I could largely automate the process.
Here is how it works …
- We take a snapshot of who has delegated to ASTOR consistently over the last six epochs
- We calculate the average stake for every stake address that qualifies
- From the pool rewards we subtract 1% margin that goes to charity
- We then subtract the actual running cost, which is very little
- We further subtract a tax escrow, which is subject to local tax regulations
- The remainder is distributed proportionally among delegators who qualify
- You qualify when your payout value is >= 1 ADA (enforced by the network)
- Finally, we generate a transaction with metadata that publishes the details