Awareness Guide

The conversion rate is the pace at which a wallet converts Credits into Bitcoin. This rate is constantly updated based on system-wide statistics and individual wallet activities. The conversion rate for each wallet is displayed in satoshis per hour (sats/hr) within the "Credits" section of the wallet's Dashboard. A Satoshi is the smallest denomination of Bitcoin (being 0.00000001) in the same way that a penny is the smallest denomination of the US Dollar (being 0.01). So the sats/hr illustrates the amount of Credits (in satoshis) that will convert into Bitcoin each hour.

The primary system-wide metric that is considered when defining a base conversion rate for all wallets is the system’s balance-to-obligations ratio, or a comparison between the amount of Bitcoin held in the Vault versus the aggregated amount of Credits that are assigned to all wallets. For example, if the Vault holds 0.5 Bitcoin and owes 2 Bitcoins in Credits, the balance-to-obligations ratio would be 0.5/2 or 0.25 or 25%. If the Vault holds 1 Bitcoin and owes 2 Bitcoins in Credits, the balance-to-obligations ratio would be 1/2 or 0.5 or 50%. As this ratio increases, so does the conversion rate for all wallets within the ecosystem.

On a wallet level, the amount of Credits owed is used as a key metric, in combination with system-wide metrics, to determine each wallet’s individual conversion rate. In addition to this, actively used wallets maintain the full calculation of their conversion rates while wallets having extended periods of inactivity may experience progressively lower conversion rates. This design establishes a balanced and justifiable way to reward wallets that actively transact within the ecosystem while preventing unused wallets from draining the Vault’s reserves without adding value or producing income for the ecosystem.

Conversion rates for individual wallets can also increase when Boost Points are assigned to a wallet. Boost Points can be considered as a fixed allotment of points that are used to increase the conversion rates of qualifying wallets for a period of 24 hours. Boost points are allocated in percentages and assigned to wallets based on the value that each qualifying activity introduces into the ecosystem. The qualifying activities that trigger the assignment of boost points are:

1. Credit purchases within the marketplace
2. Successful referral of new users to the platform
3. Playing rounds of Wagering Credits

If there is at least one wallet that is eligible to receive boost points within a 24-hour period, the entire allocation of boost points is assigned accordingly, whether it be to a single wallet or to thousands of wallets. As an example, let’s say that only one wallet (WALLET 1) was eligible for boost points by purchasing $10 of Credits in the marketplace. That wallet would start receiving the full 100% allocation of boost points (significantly increasing the conversion rate) and would continue receiving an allocation over the course of the next 24 hours. However, the allocation will change if another wallet performs an action that initiates the assignment of boost points. Let’s say that an hour later, another wallet (WALLET 2) purchases $100 in Credits from the marketplace. With a second purchase occurring within the same 24-hour window, the allocation of boost points for all eligible wallets would change. In this case, the boost points assigned to WALLET 1 would decrease from 100% to 9.09% (calculated by 10/110) and the boost points assigned to WALLET 2 would increase from 0% to 90.9% (100/110). This calculation rewards wallets based on the comparative value that is introduced to the ecosystem within any given 24-hour period. Such calculations occur when a new qualifying activity is performed and when an allocation from a qualifying activity ends 24 hours later.

So boost points can be both competitive and dynamic, but offers additional incentives for users to actively engage with their wallets. Such engagements benefit both the individual wallet holder and the ecosystem as a whole.