Transaction mining is a proposed rewards program that aims to incentivize trading by returning a portion of trading fees and funding payments to traders.
Reward early traders with part of the inflation rewards to attract more traders to the system
Distribute PERPs into the hands of users
Create a positive feedback loop for traders and stakers
Prevent wash trading
Providing transaction mining rebates for 1) trading fees 2) funding payment.
The Transaction Mining program will test run for 4 weeks after the mainnet launches and will be evaluated further at that point.
50% of the inflationary rewards will be used for this Transaction Mining program.
At the end of every week (Sun 00:00 UTC)
Perpetual Protocol aggregates all the trading fees and funding payment paid by each network participants of the given week.
Each network participant is rewarded USD-denominated value of PERP based on 100% of their aggregated trading fees and 50% of their aggregated funding payments. The USD price of PERP is TWAP of that week.
The rewarded PERP tokens are capped at 50% of the inflation rewards for that week. Once the rewarded PERPs > the cap, the rewarded PERPs will be proportionally distributed to stakers.
80% of the paid PERPs are locked on-chain for one year, and the remaining 20% is claimable right away. The locked rewards would not be staked in the Staking Reserve.
Perpetual Protocol pays each staker by submitting an on-chain (or several) transaction(s).
Perpetual Protocol will publish weekly trading stats to IPFS for anyone who wants to verify it.
Alice pays $50 of trading fees to open a long position on Monday and also pays $20 of funding to shorts on the same day. At the end of the week, she would receive $60 of PERP to compensate her fees. She could claim $12 of PERP right away, and the other $48 of PERP one year after.
50% of a trader's funding payments would be sent to the trader;
50% of the funding payments would be sent to the Insurance Fund instead of the receivers of the funding payment. This is to prevent wash trading.
Traders earning PERPs → more fees → more Insurance Fund / more yield for stakers → more demand of PERPs → more traders earning PERPs
Perpetual Protocol is giving 100% taker rebates, and so it’s “free” for traders to trade, but it also disincentivizes wash activity because of the USD-denominated value of PERP and one-year locked-up
Off-chain process that’s easy to update
Need a reliable TWAP price before it launches
The ratio of liquidity mining
50% of the total inflation rewards
The ratio of 1-year reward lockup
80% will be locked-up for one year
20% will be claimable after the epoch
The ratio of PERP rewards
100% of trading fees
50% of the funding payment