Cycle 6 Rewards Distribution Example

Let’s walk through an example of DataDAO Alpha:

Epoch 6 Ends:
- DataDAO Alpha reports:
  - $5M trading volume for its token.
  - 1,000 unique contributors.
  - $10,000 in data access fees.
- All DataDAOs report:
  - $25M trading volume for its token.
  - 20,000 unique contributors.
  - $100,000 in data access fees.
- Total DataDAO pool is 300,000 VANA for the epoch.
Scoring Breakdown:
- Trading Volume: 5M / 25M = 20% of pool (30% weight).
- Unique Contributors: 1,000 / 20,000 = 5% of pool (20% weight).
- Data Access Fees: 10K / 100K = 10% of pool (50% weight).
- DataDAO Alpha Score:
```
0.30 × 20% + 0.20 × 5% + 0.50 × 10% = 12% of the rewards pool.
```
Reward Allocation:
- 12% × 300,000 VANA = 36,000 VANA allocated to DataDAO Alpha.
Daily Buy-In Deployment:
- 36,000 VANA ÷ 91 days = 396 VANA daily.
- Each day, VANA Foundation buys DataDAO Alpha tokens for 198 $VANA and adds liquidity to the DEX pool alongside with 198 $VANA

Feel free to check out the spreadsheet for the calculation of rewards: Rewards Calculator