Reward Payouts
Issuer Fees
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
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.
Evaluator Rewards
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.
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