Rewards ​

Theory ​

Users are incentivised to provide liquidity, use the SORA network, and support the set of network validators. There are different reward types depending on the activity.

Let's describe all the currently available rewards in detail:

• Rewards for Market Makers (Inactive)
• LP Farming Bonus rewards
• Rewards for buying from the TBC
• LP fees
• Vesting VAL for XOR erc-20 holders
• VALidator rewards

Here is a quick summary of every reward.

Rewards for Market Makers (Inactive) ​

Polkaswap was distributing an amount of PSWAP proportional to trade volume to market makers who conducted at least 500 transactions per month, with a per-transaction amount of 1 XOR or more (excluding transaction costs).

LP Farming Bonus rewards ​

Polkaswap users will earn PSWAP tokens for providing liquidity for at least 3 million (3'000'000) XOR in any XOR-paired pool. Your reward is doubled if you contribute to the XOR-VAL, XOR-PSWAP, XOR-DAI, XOR-ETH, or XOR-DOT pools.

⚠️ Polkaswap users should monitor the status of their liquidity provision, as they will lose the vesting for PSWAP rewards if their LP falls below 3 million XOR.

Rewards for buying from the TBC ​

A token bonding curve is a smart contract that takes one token as an input and outputs another, using a mathematical formula. A token bonding curve can automatically issue, sell, and buy tokens at prices that are determined by the mathematical functions used.

The PSWAP rewards to be earned are calculated exponentially as a function of current reserves: the lower the reserves at a given time, the greater your rewards for helping boost them.

LP Fees ​

The first way to earn PSWAP rewards on Polkaswap is to provide liquidity on the DEX with XOR and any other token. Liquidity providers get 0.3% of each swap in fees so that they will earn PSWAP for providing liquidity to the pool. Then more users trade, the more liquidity providers get.

Vesting VAL for XOR erc-20 holders ​

Before the SORA launch, a XOR erc-20 holder snapshot was made. The block number of the snapshot in the Ethereum network is 12225000. Each XOR holder from this snapshot will be receiving VAL tokens through vesting.

VAL is vested per day to each XOR from the snapshot, from a remaining portion of the VAL that are burned every day (burned amount -10% - daily validator reward %).

Vesting PSWAP for Market Makers, LP providers and buyers from TBC

Rewards can't be claimed instantly. Vesting speed depends on the amount of PSWAP burned from Polkaswap usage fees. PSWAP are vested with Strategic Bonus Vesting, where the vested amount is a percentage of the daily amount of PSWAP burned in transaction fees, as shown in the figure below.

As you can see, at launch the % of burned PSWAP which is allocated as Strategic Bonus Vesting is 0%, and it increases linearly in 5 years to 55%, and then it will stay constant. The other burned PSWAP is reserved for the SORA Parliament (10%) and as a reward for Liquidity Providers. This reward is similar to the one you get from providing liquidity on Uniswap, namely the 0.3% on every trade.

An example that can be useful to clarify:

Let's suppose that currently when 100 PSWAP are burned, 81 PSWAP are minted to reward Liquidity Providers, then, 10 PSWAP are minted for the Parliament and 9 PSWAP are minted as a bonus reward. That means that 3 PSWAP (33%) are reserved as a strategic reward for Liquidity Providers, 3 PSWAP (33%) are reserved for buyers from TBC and 3 PSWAP (33%) are reserved for market makers. Every user will receive rewards proportional to their vesting amount.

An important consequence of this design is that it assures that a sudden supply of tokens will not immediately flood the market, and gives clear forward guidance about the supply of tokens in circulation, which is expected to remain constant.

VALidator rewards ​

Users may stake with SORA validators in order to get VAL rewards. Or they can run their own validator node.

VALidator rewards should be claimed using the Polkadot js apps user interface.

Related articles:

• Polkaswap Rewards
• SORA VALidator Rewards
• How to nominate Validators (stake your XOR)
• How to Run a SORA Testnet Node
• How to claim nominators and validators rewards
• SORA v2 Implementation

Practice ​

In the practice section, we'll teach you to claim tokens using Polkaswap and Polkadot js apps user interface.

Claiming SORA vesting and Polkaswap rewards ​

Via Polkaswap ​

Claiming SORA VALidator and nominator rewards ​

Via polkadot.js UI ​

Important: when a nominator or the validator himself claims rewards, those are sent to all the accounts that have received a reward, so it is enough that one person claims for everyone. This may be the reason why you often don't see any reward on the website

1. Go to polkadot.js, click on "Network" and then "Staking". Make sure you are connected to the SORA network, you should see the logo at the top left.

2. Click on "Payouts":

   

   If there is a staking reward for you to claim, you should see them, as in the screenshot below:

   

3. Click on "Payout" and then follow the proposed flow.

4. Once completed, sign with the extension as prompted.