Contribution

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Contribution Tracking

In the FRAG-22 standard, reward distribution isn’t simply based on the current balance of receipt tokens held by users. Instead, rewards reflect both the quantity of tokens and the duration they are held. Accurately tracking this combination of quantity and time—termed “Contribution”—ensures rewards are distributed fairly according to users’ actual involvement over time.

When a user’s token balance changes, either by deposit, withdrawal, transfer, or wrapping/unwrapping, the system immediately recalculates their contribution to keep reward allocations precise and fair.

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Contribution Calculation

Contribution calculation involves two primary data structures:

• Fund Reward Account: Maintains global information about total token supply and cumulative contributions across all users.
• User Reward Account: Tracks each user’s token balance, individual contribution, and the timestamp of their last contribution update.

The formula for calculating contribution is:

$\text{Contribution Increase} = \text{Token Balance at Previous Update} \times \text{Elapsed Time}$

Upon any balance change, FRAG-22 performs two calculations:

1. Global Contribution Update
   • Calculates the elapsed time since the last global update.
   • Increases global contribution by multiplying global token supply with the elapsed time.
2. User Contribution Update
   • Calculates the elapsed time since the user’s last update.
   • Increases user’s contribution by multiplying user’s token balance with the elapsed time.

This immediate recalculation ensures both global and individual contribution records stay accurate.

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Contribution Calculation Flow

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Data Structure of Contribution Records

Explanation:

• Fund Reward Account
  • GlobalContribution: Cumulative contribution of all users.
  • GlobalTokenSupply: Total outstanding token supply at the last update.
  • LastUpdatedTimestamp: Timestamp of the last global contribution update.
• User Reward Account
  • UserContribution: User’s accumulated contribution over time.
  • UserTokenBalance: User’s token balance at the last update.
  • LastUpdatedTimestamp: Timestamp of the last individual update.

This structure enables immediate updates on contribution states, facilitating accurate reward calculation and settlement.

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Contribution Tracking Example

To clearly illustrate contribution calculations, consider three users—Alice, Bob, and Chuck—and how their contributions evolve:

How to read this table:

• From 0 to 300 seconds:

  • Alice held 500 tokens for 300 seconds:

    Alice’s contribution increase: $500 \times 300 = 150,000$

  • Total global tokens were 1000 for 300 seconds:

    Global contribution increase: $1000 \times 300 = 300,000$

• Similarly, contributions for Bob and Chuck are calculated at each interval.

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Contribution Tracking Outcomes

By employing immediate recalculation upon every balance change:

• Fairness: Ensures that rewards match user participation accurately.
• Transparency: Users can verify their contributions and corresponding rewards clearly.
• Precision: Facilitates precise and trustworthy reward distribution aligned to actual token holding duration.

FRAG-22’s structured approach provides a transparent, verifiable, and accurate reward distribution mechanism by effectively managing user contributions in real-time.