Reward Payouts
Issuer Fee
Projects raising funds on Polimec only pay a percentage fee in relation to the total fundraising amount in their contribution token if the funding round completes.
Issuer fee schedule:
x≤1m USD
10%
1m<x≤5m USD
8% for any additional USD raised
x>5m USD
6% for any additional USD raised
Issuer Fee Calculation
Calculation Example (Cont.)
With the total funding amount raised being USDT 1,083,000, the issuer will have to pay an issuer fee in their contribution token depending to the raised amount, as per fee schedule.
Therefore, the calculation for the issuer fee is as follows:
x≤1m USD
10%
1m<x≤5m USD
8% for any additional USD raised
x>5m USD
6% for any additional USD raised
N/A
Total Issuer Fee
USDT 106,640
This equals an issuer fee of approx. or . Note that the issuer fee in contribution tokens, i.e. 9,850, is separate from the contribution tokens, i.e. 100,000, sold in the funding round.
The issuer fee in contribution tokens equals the issuer fee in USDT divided by the average token price paid by participants. This average price can be different from the weighted average token price, since participants in the auction round may have entered below that price.
Issuer Fee Allocation
The following threshold applies to the total amount raised relative to the target funding amount.
Possible outcomes:
<33%
Rejected (autom.)
Slashed
Refunded
≥33%
Accepted (autom.)
Rewarded
Receive Contribution Tokens
Should the total amount raised fall below 33% of the target funding amount, the protocol automatically declines the project, slashes 20% of the evaluators’ bonded PLMC, and refunds the participants. The slashed PLMC are allocated to the on-chain treasury. The 33%-threshold incentivizes projects to raise funds in line with their expectations. It prevents unrealistic or excessively high valuations as well as participants getting stuck in an unsuccessful funding round.
Should the total amount raised fall at a level of 33% or above of the target funding amount, the protocol automatically accepts the funding, evaluators are rewarded in the respective contribution tokens based on the amount raised for the project, and participants receive the respective contribution tokens based on their participation.
Based on the total amount raised compared to the target funding amount, the funding is automatically accepted or declined. The applicable settlement will occur 1 hour after the automatic outcome.
Thus, the evaluator rewards are contingent upon two elements. Firstly, the ratio between the total amount raised and the target funding amount and secondly, whether the funding is accepted. In the event that the funding is declined, there will not be any issuer fees to be apportioned to the evaluators. Conversely, if the funding is accepted and there are issuer fees to be distributed, the proportion between the total amount raised and the target funding amount defines the distribution to liquidity pools, long-term holder bonuses, and ultimately, evaluator rewards.
Should the funds raised fall below 33% of the target funding amount, the allocation would look as follows:
Liquidity Pools: 0%
Evaluator Rewards: 0%
Long-Term Holder Bonus: 0%
In this case, the protocol has an automatic rejection mechanism. As a result, the protocol obviates the imposition of issuer fees. However, evaluators get slashed 20% of their PLMC as their prediction was wrong. These PLMC are then transferred to the on-chain treasury.
Should the total amount raised fall at a level of 33% or above of the target funding amount, the allocation would look as follows:
Liquidity Pools: 50%
Evaluator Rewards: 30%
Long-Term Holder Bonus: 20%
This mechanism encourages evaluators to only back projects they consider to have an above-average success probability. It consequently ensures that only projects deemed promising by the community are made available to participants.
The protocol further distinguishes between two categories of evaluators, allocating 80% of the evaluator rewards pro rata to all evaluators, and the remaining 20% solely to early evaluators, defined as those who bonded their PLMC prior to the 10% evaluator bonding threshold being reached.
Calculation Example (Cont.)
It is imperative to note that the issuer fee, equivalent to USDT 106,640, is paid in the form of contribution tokens in accordance with the fee schedule. This fee is then fully allocated to the on-chain contribution treasury to incentivize and reward network participants.
As the target funding amount of USD 1,000,000 is met by the total funding amount raised, which equals USD 1,083,000, it can be deduced that the project has achieved over 100% of its target funding. Thus, the allocation of the issuer fee proceeds as follows:
Liquidity Pools: 50%
Evaluator Rewards: 30%
Long-Term Holder Bonus: 20%
In this example, the issuer fee allocated in contribution tokens to the evaluators is .
Evaluator Rewards Allocation
Calculation Example (Cont.)
In this example, the successful attainment of the target funding amount triggers the automatic acceptance of funds and the subsequent distribution of evaluator rewards in contribution tokens.
In accordance with the bonded PLMC threshold of 10%, the protocol designates two portions of the rewards. A proportion of 80% is allocated pro rata among all evaluators, while the residual 20% is earmarked exclusively for those who participated as early evaluators by bonding their PLMC prior to the achievement of the 10% bonding threshold.
All evaluator rewards:
Valeria
Tim
Marc
The distribution of evaluator rewards among Valeria, Tim, and Marc is determined in proportion to their respective contributions to the total USD amount of bonded PLMC, which stands at USDT 200,000.
Early evaluator rewards:
Valeria
Tim
Marc
not entitled
not entitled
The rewards earned by early evaluators, i.e. evaluators Valeria and Tim, are augmented by an additional 20% of the total rewards as a means of incentivizing early participation in project evaluations and deterring free riding.
The allocation of rewards between evaluators Valeria and Tim is determined proportionally to their contribution towards the 10% evaluator bonding threshold of USDT 100,000.
Thus, the individual evaluator rewards in this example are:
Valeria
886.50
443.25
1,329.75
Tim
768.30
147.75
916.05
Marc
709.20
not entitled
709.20
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