Rakebacks and Rewards
There is a 1% protocol fee paid by winners on all games in the YOLO Games suite. A chunk of these are paid back to players via Player Rewards.
Check out the rewards and fee breakdowns below.
🏆 Player Rewards (50%)
💰 Rakeback (45%)
During every 12-hour period, 45% of all protcol fees are collected and reallocated back to YOLO Games players in the form of a rakeback. The specific allocation is calculated based on a combination of each player's performance and volume during each period.
Rakebacks return a portion of fees to players over a fixed period.
Let’s illustrate the mechanics of this with an example. Important to note is that each period on YOLO Games is a 12-hour slot.
Suppose that one morning, Alice pays 1 ETH in fees. She can reclaim a portion of these over the next four periods. The specific allocation is calculated based on a combination of each player's performance and volume during periods.
Let’s call her spending this morning Phase 0, which runs from 00:00 (UTC) until 12:00 (UTC):
- When Phase 1 kicks off at 12:00 (UTC), she’ll be able to claim a quarter of her total rakeback.
- When Phase 2 kicks off at 00:00 (UTC) the following day, she’ll be able to claim another quarter of her rakeback.
- Phase 3 at 12:00 (UTC) nets her another quarter.
- Phase 4 at 00:00 (UTC) the day after makes her final quarter claimable.
Of course, this breakdown assumes that Alice hasn’t been playing any games in subsequent Phases. If she has, her rakeback gets added to these payouts.
Alice needs to be relatively quick in claiming her ETH. These rewards expire at the end of each subsequent Phase. So, for instance, if the first quarter from Phase 1 isn’t claimed by the end of Phase 2, it’s forfeited to the Treasury.
🎟️ Weekly Lotteries (5%)
Collect a Ticket for every 1,000 Points you earn on YOLO Games. Then, use it in a Weekly Draw every Tuesday!
The more used, the greater your odds of winning. Your chances of taking home the top prize are proportional to the amount of Tickets you've entered vs. the total amount entered by all participants.
Consider the breakdown below:
- Alice uses 100 Tickets
- Bob uses 650 Tickets
- Carol uses 250 Tickets
- Dan uses 1000 Tickets
Here, we've got four players, and 2,000 Tickets in total:
- Alice has a 5% chance of winning (100/2,000)
- Bob has a 32.5% chance of winning (650/2,000)
- Carol has a 12.5% chance of winning (250/2,000)
- Dan has a 50% chance of winning (1,000/2,000)
When a draw begins, a winner is randomly selected for first place — a grand prize of 30% of the pot. Let's suppose that Dan takes it home.
Dan's 1,000 Tickets are now removed from the pool, as each player can only win one prize per draw. Let's take another look at the odds, where only 1,000 Tickets remain:
- Alice has a 10% chance of winning (100/1,000)
- Bob has a 65% chance of winning (650/1,000)
- Carol has a 25% chance of winning (250/1,000)
With her 100 Tickets, Alice wins this round — nabbing a second prize worth 10% of the pot. You know the drill — we remove her Tickets and draw again for the third prize:
- Bob has a 72% chance of winning (650/900)
- Carol has a 28% chance of winning (250/900)
Congrats to Bob — who takes home 7% of the pot. With her new 100% win chance, it shouldn't come as a surprise that Carol bags the fourth — worth 5% of the pot.
In this example, you might notice that only 52% of the pot has been distributed across players. That's because lotteries are designed to produce 50 winners. In the event that there are less than 50 players, the remaining prizes will be set aside for future incentives.
Weekly Draws take place at 16:00 (UTC) every Thursday.
♻️ YOLO Buybacks (20%)
20% of protocol fees are used to purchase YOLO back from the market.
🏦 Treasury (30%)
The remaining tranche of protocol fees is set aside for operational costs, future promotions and ecosystem growth initiatives.