Curator will reward users making valuable contributions and adding value to the ecosystem with $HUGS tokens.
The Elastic Reward Pool is a smart contract that manages the distribution of an elastic token pool. The token managed by this smart contract is the $HUGS token.
A fixed monthly percentage of the tokens in the pool is distributed amongst the Curator users who participated in one of the Curator apps in the past month.
Fees for elasticity
A part of the fees paid for using the Curator infrastructure will be poured back into the Elastic Reward Pool. This creates a circular token movement, creating a token pool that never runs dry.
Automated User Rewards
Contributors and reviewers can be rewarded with $HUGS from the Elastic Reward Pool as a reward for qualitative contributions that were accepted by the network of reviewers.
Reviewers can also receive rewards when reaching consensus and under the prerequisite that their vote is part of the majority vote. Both types of confirmations, acceptance and rejection, can be rewarded. Consensus is the driver for the incentive, not the acceptance or rejection of a contribution.
Honest feedback thanks to game theory
Similar to The Prisoner's Dilemma from game theory, users reviewing another user's contribution won't know each other. Neither will it be revealed who the user was making the contribution until after the review process was done. The contributions that need to be reviewed will be randomly assigned to a small subset of users.
Dishonesty puts rewards and reputation at stake
Because the outcome (acceptance or rejection of a contribution) is unknown to all reviewers, there will be no incentive for a reviewer to accept or reject issues without checking them.
Not only would the reviewer lose his reward, but it would negatively impact his reputation score. This in turn would rapidly result in the reviewer losing his good reputation and eventually being ignored by the system.
Periodic Rewards with a Fixed Percentage
Rewards will be allocated according to the following formula:
𝑅 = the reward in $HUGS earned by the user
𝑃𝑟 = the number of $HUGS in the Reward Pool
α = a fixed percentage
By applying this formula, the number of $HUGS will gradually decrease month over month. This is inversely proportional to the growing number of users on the network. Without any new tokens being added to the Elastic Reward Pool, the platform would eventually run out of $HUGS to distribute to users.
By pouring part of the fees back into the pool an infinite supply of tokens will be available in the reward pool.