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.

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

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).