Predik Rewards System & Accuracy Formula
🧠 Proof-of-Prediction Economy
The Predik rewards system creates a sustainable, merit-based economy where accurate predictions are rewarded proportionally to their consistency and volume. Our unique scoring formula ensures that the best predictors rise to the top while preventing gaming and encouraging long-term participation.
🎯 Core Mechanics
Entry Requirements
- Cost per prediction: 5 $MATIC (Polygon)
- Purpose: Creates skin in the game and funds the reward pool
- Cycle duration: 1 month
- Eligibility: All predictions made during the month enter the current cycle
Leaderboard System
- Rankings based on accuracy, consistency, and prediction volume
- Top 8 forecasters ranked and rewarded monthly
- Transparent on-chain verification of results
🏆 Monthly Leaderboard Rewards
| Rank | Position | Reward (% of Pool) |
|---|---|---|
| 🥇 | #1 | 25% |
| 🥈 | #2 | 20% |
| 🥉 | #3 | 15% |
| 🏅 | #4 | 10% |
| 🏅 | #5 | 8% |
| 🏅 | #6 | 6% |
| 🏅 | #7 | 5% |
| 🏅 | #8 | 4% |
| 🏛️ | Treasury | 7% |
Total Distribution:
- 93% to top 8 performers
- 7% to Predik Treasury for ecosystem development
🎯 Scoring Formula
Final Score Calculation
Score_u = (Σ(Accuracy_i) / N) × log₂(1 + N)
Where:
- Score_u = User's final leaderboard score
- N = Total number of qualified predictions made during the cycle
- Accuracy_i = Accuracy score of prediction i (0 to 1)
- log₂(1 + N) = Volume scaling factor with diminishing returns
Accuracy Scoring Per Prediction
| Result | Accuracy Score | Description |
|---|---|---|
| Perfect | 1.0 | Correct prediction (direction & timeframe) |
| Partial | 0.5 | Direction correct, timing slightly off |
| Incorrect | 0.0 | Wrong prediction |
Why This Formula Works
✅ Rewards Consistency: Average accuracy ensures quality matters
✅ Encourages Volume: More predictions = higher potential score
✅ Prevents Spam: Logarithmic scaling has diminishing returns
✅ Fair Competition: Balances quality vs quantity effectively
📊 Scoring Examples
| User | Predictions (N) | Avg Accuracy | Calculation | Final Score |
|---|---|---|---|---|
| A | 20 | 90% | 0.90 × log₂(21) | 3.95 |
| B | 40 | 75% | 0.75 × log₂(41) | 4.02 |
| C | 10 | 100% | 1.00 × log₂(11) | 3.46 |
Winner: User B wins despite lower accuracy due to consistent performance over more predictions
📦 Reward Pool Distribution
Pool Composition
- 93% distributed to top 8 performers
- 7% allocated to Predik Treasury
Treasury Allocation (7% of Pool)
The treasury funds are used for:
- 🔧 Protocol development and maintenance
- 🎯 Special event bonus pools
- 🤝 Partnership incentives
- 🛡️ Security audits and infrastructure
- 🌱 Ecosystem growth initiatives
💰 Economic Example
Monthly Pool Calculation
1,000 predictions × 5 MATIC = 5,000 MATIC total pool
Distribution:
- Top 8 performers: 4,650 MATIC (93%)
- Predik Treasury: 350 MATIC (7%)
Top performer (#1) receives:
25% × 5,000 = 1,250 MATIC reward
📦 Additional Reward Sources
🔁 Primary: Prediction Entry Fees
- Every prediction contributes 5 MATIC to the pool
- Transparent smart contract collection
- Monthly distribution to winners + treasury
🪙 Secondary: Staking Boost
- Stake $PREDIK tokens for reward multipliers
- Additional yield contribution to prize pools
- Enhanced rewards for long-term participants
🤝 Tertiary: Sponsor Pools
- Protocol treasury contributions
- Partner-sponsored bonus rewards
- Topic-specific incentives (DeFi, AI, elections)
🎯 Additional Reward Mechanisms
NFT Badges
- Proof-of-Prediction NFTs for top performers
- Reputation markers for elite strategists
- Access keys to private prediction groups
Prediction Vaults
- Lock rewards for enhanced yields
- Compound earnings through DeFi strategies
- Build long-term ecosystem loyalty
Referral Program
- 10% commission on referred user prediction fees
- Passive income for community builders
- Scalable growth incentive
🚀 Future Enhancements
Planned Features
Confidence Weighting (Coming Q1 2025)
- Users attach confidence levels to predictions
- Higher rewards for correct high-confidence predictions
- Penalties for overconfident wrong predictions
League System (Coming Q2 2025)
- Weekly mini-tournaments
- Lower entry fees for beginners
- Specialized topic leagues
Championship Events (Coming Q3 2025)
- Quarterly grand tournaments
- Sponsored prize pools
- Global leaderboard rankings
🔒 Smart Contract Implementation
The rewards system is fully automated through smart contracts:
- Transparent fee collection
- Automatic score calculation
- Trustless reward distribution
- On-chain leaderboard verification
- Treasury allocation automation
📈 Success Metrics
Our formula optimizes for:
- Quality: High accuracy predictions
- Consistency: Sustained performance
- Engagement: Regular participation
- Growth: Community expansion through referrals
- Sustainability: Treasury funding for long-term development
The Predik rewards system creates a sustainable economy where the best predictors are fairly compensated while ensuring continuous platform development through treasury allocation.