This article was first published on Loopring Protocol - Medium
Update on Loopring’s Long-Term Incentive Program
Following our token generation event on August 30, 2017, Loopring Foundation kicked off a ‘long-term incentive program’ to motivate long-term supporters in our community. This was implemented at the following smart contract: https://etherscan.io/address/longterm.lrctoken.eth. The initial post describing the program launch can be found here.
The program allowed LRC token holders to deposit their LRC tokens into an open-source Ethereum smart contract, with the tokens being locked for 18 months after participation. The participation period lasted for 2 months. The first participant will be able to withdraw his/her tokens on February 22, 2019. This post will describe how to maximize earnings in the lock-up period and how to withdraw LRC tokens.
Rate of return
Participants can claim a total of 50,177,628 LRC in rewards from Loopring’s long-term incentive program: 50 million LRC having been offered by the Loopring Foundation and 177,628 LRC contributed by the community. Investors initially locked up a total of 65,144,894 LRC tokens, meaning there is a total of 115,322,522 LRC in the contract, with an average rate of return of 177%.
It’s worth noting that the actual rate of return for any participant will depend on the timing of their withdrawal. The earlier you withdraw LRC tokens, the lower the rate of return you will receive; the later you withdraw the tokens, the higher the rate of return.
For example, suppose that participants withdraw LRC in increments of 10,000, the rate of return of the first 10 and the last 10 are as follows:
It can be seen that the last person to withdraw 10,000 LRC will receive over 850% rate of return. If investors withdraw LRC tokens in units of 1000, the comparison of the rate of return of the first 10 and the last 10 will be ...
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Loopring Protocol - Medium