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Reward Mechanisms

This document details how rewards are distributed in the Hokusai ecosystem for contributions and participation.

Reward Types​

1. Performance Rewards​

Rewards for improving model performance:

Reward Calculation​

Reward = DeltaOnes * Tokens_Per_DeltaOne

Where:

  • DeltaOnes = Number of percentage points of improvement (1 DeltaOne = 1% improvement)
  • Tokens_Per_DeltaOne = Fixed number of tokens awarded per DeltaOne

Example:

Baseline Performance: 75% accuracy
New Performance: 82% accuracy
Performance Improvement: 7%
Tokens per DeltaOne: 100 tokens

Reward = 7 DeltaOnes * 100 tokens = 700 tokens

2. Liquidity Rewards​

Incentives for providing liquidity:

Pool Rewards​

  • Trading fee sharing
  • Protocol fee distribution
  • Staking bonuses

Reward Rates​

  • Base rate: 0.3% of trading volume
  • Special rates for enterprise pools

Distribution Mechanisms​

1. Performance Distribution​

The TokenManager contract handles performance-based rewards:

function mintForImprovement(
    bytes32 modelId,
    uint256 improvementBps,
    address contributor
) external onlyVerifier {
    require(improvementBps > 0, "No improvement");
    uint256 reward = calculateReward(improvementBps);
    _mint(contributor, reward);
    emit ImprovementRewarded(modelId, contributor, reward);
}

Key components:

  • DeltaOneVerifier: Validates performance improvements
  • TokenManager: Mints and distributes rewards
  • ModelRegistry: Tracks model performance and token addresses

2. Liquidity Distribution​

The BondingCurveTreasury contract manages liquidity rewards:

function distributeLiquidityRewards(
    address provider,
    uint256 amount,
    uint256 duration
) external {
    uint256 baseReward = calculateBaseReward(amount);
    uint256 timeBonus = calculateTimeBonus(duration);
    uint256 totalReward = baseReward + timeBonus;
    
    _mint(provider, totalReward);
}

Vesting Schedules​

1. Performance Rewards​

  • 3-month cliff period
  • Early withdrawal penalty

2. Liquidity Rewards​

  • Immediate distribution
  • Bonus for longer commitments

Reward Parameters​

1. Performance Parameters​

  • Minimum improvement threshold: 10 bps (0.1%)
  • Maximum reward per improvement
  • Cooldown period between improvements

2. Liquidity Parameters​

  • Base reward rate
  • Bonus multipliers
  • Lock-up periods

Monitoring and Analytics​

1. Reward Metrics​

  • Total rewards distributed
  • Reward distribution by type
  • Vesting status

2. Participation Metrics​

  • Active contributors
  • Liquidity providers

3. Impact Metrics​

  • Model improvements
  • Protocol growth
  • Community engagement

Next Steps​

For additional support, contact our Support Team or join our Community Forum.

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