Decide the Legends Rewards Distribution

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Author: Ambire Wallet Date: January 30, 2025

Proposal overview

This governance proposal constitutes the first leg of reward distribution for users of the Ambire extension, which happens through Legends, our on-chain game.

The question is: Should we go ahead with the following reward mechanism for allocating rewards in Ambire Legends?

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Proposal details

A total of 20 million $WALLET will be distributed to Season 0 participants, which amounts to 2% of the total supply and just over 10% of the total reward pool for extension awards.

Rewards will be awarded at the end of each month and calculated using a formula that includes your Legends level (based on your XP earnings) and the equivalent of your balance in USD. The exact reward rate will depend on the length of Season 0, and the 20 million will be divided up to calculate the rate. The duration will be approximately 3 months, which may, at Ambire’s discretion, be increased to 5 months. If there are any changes to this decision, the reward rate will be adjusted accordingly for the following months in such a way that the total amount of distributed tokens is 20 million $WALLET.

Rewards will be paid out in $xWALLET (soon to be $stkWALLET). You can read more about the $xWALLET token and the transition to $stkWALLET. Once the rewards mechanism has been decided, we will provide additional information on how to claim rewards, how to unstake, etc.

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Rewards formula

The weight (or proportion) of total rewards for each season per player will be calculated using the following formula:

Weight = Level x sqrt(BalanceInUSD)

Rewards will be distributed proportionally to those weights.

A user’s level is based on their XP using the formula level = floor(sqrt(XP) / 4.5).

BalanceInUSD will be calculated by averaging your balance across random time points in each week of the period. This is to ensure that users are incentivized to keep their balance high throughout the entire period. It will be calculated using the Ambire portfolio functionality as implemented in Github, so it will include all Ambire default networks and all automatically discovered tokens.

Example: If you are level 15 and your (BalanceInUSD) is $2,000, then your weight will be 670.82. Here’s how it looks applied in the formula: 15 x sqrt(2000) = 15 x 44.72 = 670.82.

The actual rewards will then be calculated as follows:

Your rewards = total amount of rewards x (your weight/sum of all weights)

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Rewards eligibility

In order to qualify for Legends rewards, you must:

• Be using an Ambire v2 (extension) Smart Account, which has an existing Legends character minted on it.
• Be at least at Level 3 or higher.
• Have a total balance of at least $500

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Proposal motivation

With the proposed rewards mechanism, we are aiming to ensure the following:

• Users keep funds in their Smart Accounts continuously (and not just add funds for rewards distribution, then withdraw)
• Rewards are issued directly to the users and automatically staked (rewards will be paid out in $xWALLET, soon to be $stkWALLET)
• We take multiple factors into account, not just XP, to ensure a fair and balanced distribution of rewards for different kinds of users
• Legends players are involved in the decision-making process for the future of Legends and the Ambire extension.

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Voting eligibility

You can vote if you are a $xWALLET holder (xWALLET are tokens received for staking $WALLET). Anyone who owns $xWALLET staking tokens can participate in this governance vote.

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Useful Links

Ambire Governance Votes Website GitHub Twitter Discord Telegram Forum Legends Legends Codex