Cloud Minting Rewards Calculation Formula

Learn about Cloud Minting Rewards Calculation Formula on Layer 4. Discover how rewards are calculated with clear explanations and detailed insights. Perfect for understanding Layer 4's minting process

Software License Metadata:

For our architecture, each Software License is associated with specific metadata that determines its properties:

• Lifetime: This denotes the duration for which the Software License will be valid, measured in days.

• Boost Value: A numerical representation, the boost value indicates the additional benefit or bonus that the Software License provides to its holder.

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Software License Reward Calculation: Steps and Methodology

Step 1: cLFI Locking

To become eligible for rewards, a user needs to lock a specific amount of tokens associated with their Software License. The details for this are as follows:

• Maximum Tokens: An Software License holder can lock tokens up to twice the dollar value of their Software License. Considering each Software License is priced at $100, the maximum amount of tokens that can be locked is $200.

• Token: The tokens should be in the form of cLFI tokens.

• Lock Duration: Users have only one option for the locking period - 7200 days

Upon locking, the system will record a value termed as Base Lock Value (BLV). The BLV is equivalent to the cLFI's Price at Market (PTM) at the time the tokens was locked.

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Step 2: Daily Reward Percentage Calculation

The next step involves determining the daily reward percentage a user can retrieve. This percentage is derived from the properties of the Software License the user holds:

Maximum Retrievable Daily Reward %= Boost Value/Lifetime

Here:

• Boost Value is taken from the Software License's metadata.

• Lifetime is the current lifetime of the Software License in days.

This formula ensures that the reward percentage is directly influenced by the unique characteristics of each Software License and adjusts based on its generational decline.

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Software License Reward Qualification: Determining Disqualifications

Step 3: Token Lock Duration Analysis

In cloud minting license, the boost generational decline is not applicable like other software licenses. The boost percentage will remain the same till the lifetime of 7200 days is achieved.

License	No. of NFTs	Boost	Lifetime
CLOUD Minting License 1	5	30	7200
CLOUDK Minting License 2	50	8	7200

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Step 4: Price at Market (PTM) and Growth Level Price (GLP) Evaluation

This step involves analyzing two critical price points - the current Price at Market (PTM) and the Growth Level Price (GLP). The relationship between these two values determines the reward percentage:

• PTM > GLP: If the PTM is greater than the GLP, the Maximum Retrievable Daily Reward Percentage is recalculated as: New Maximum Retrievable Daily Reward Percentage=Maximum Retrievable Daily Reward Percentage*GLPPTM

In this scenario, the formula calculates the disqualified amount based on the PTM's growth over the GLP.

• PTM ≤ GLP: If the PTM is less than or equal to the GLP, then the Maximum Retrievable Daily Reward Percentage remains unchanged, and the user progresses to the next step with this value.

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Step 5: Adjustment Based on PTM and GLP Relationship

Upon comparing PTM and GLP:

PTM > GLP: If the PTM exceeds GLP, the user advances to the subsequent step without any changes.

PTM ≤ GLP: In cases where PTM is less than or equal to GLP, the disqualification percentage is computed as 1−PTM/GLP. Depending on the resultant value, the percentage of rewards to be disqualified is determined using the table below:

Decrese Price	Burn
10%	0.00%
15%	5.00%
20%	10.00%
25%	15.00%
30%	20.00%
35%	25.00%
40%	30.00%
45%	35.00%
50%	40.00%
55%	45.00%
60%	50.00%
65%	55.00%
70%	60.00%
75%	65.00%
80%	70.00%
85%	75.00%
90%	80.00%

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Step 6: Determining Final Reward Percentage

After the adjustments, the resultant percentage is termed the Actual Daily Reward Percentage. This represents the genuine reward percentage that will be released to the user.

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Step 7: Calculating cLFI Rewards

The cLFI rewards for the user are calculated using the formula:

cLFI Rewards=Actual Daily Reward Percentage*tokens

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Step 8: Withdrawal and Rebuy Allocation

Once the rewards are calculated, they are split into two segments:

• Withdrawable Percentage: 60% of the rewards can be withdrawn directly by the user.

• Rebuy Percentage: The remaining 40% is allocated for rebuy.