# Buyback-and-Distribute

A percentage of revenue will be used to buy back $TIDE on the open market and distribute it to lockers.

Currently this is implemented at 30% of revenue. This means that lockers benefit from a thriving TideFlow platform, incentivizing them to spread the word.

The longer holders lock up their $xTIDE, the bigger the revenue share they receive. The logic works as follows:

$$
\text{1) For every locker } i, \text{ holdings points are calculated as follows:} \\
\text{holding.points}\_i = xTIDE.\text{balance}\_i \cdot \left( \frac{\text{remaining lockup time}\_i}{20} \right) \\

\text{2) Holding points are summed across all lockers such:} \\
\text{total.points} = \sum\_{i=1}^{\text{total players}} \text{(holding.points}\_i) \\

\text{3) Each locker gets a pro-rata share of revenue based on their share of total holdings points as follows:} \\
\text{rev.share} = \left\[ \frac{\text{holding.points}\_i}{\text{total.points}} \right] \\
$$

Using buyback-and-distribute instead of buyback-and-burn allows us to reward the strongest believers rather than short-term traders.

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Distributing revenue in $TIDE instead of another token comes with the following benefits

* Offers real yield
* Retains protocol value (fees/revenue) in $TIDE
* Zombie addresses receive $TIDE which effectively burns them, benefitting all holders

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**Process**

* The buyback-and-distribute will happen once a week.
* 30% of revenue of the previous week is used to buy back $TIDE on the open market over 7 days to smooth out price effects and prevent front-running.
* Afterwards, the $TIDE is distributed it to stakers pro rata based on the formula above
* Stakers can claim their $TIDE rewards anytime

The first buyback-and-distribute will take place 7 days after TGE. 30% of the revenue generated before TGE will be distributed to $xTIDE holders across the first 3 months (60% in month 1, 25% in month 2, 15% in month 3).