# Prize Pool Calculation

The Bonds prize pool is funded by:

* A portion of the tax collected on every transaction of RDTN tokens,
* Returns from DAO investments, and 
* Unclaimed prize amounts from unwon lottery pools. 

Specifically, a certain percentage of the 3% tax collected on every transaction will be allocated to the prize pool, along with any unclaimed prizes from unwon lottery pools and returns from the DAO's investment portfolio.

To calculate the prize pool for each bond issuance, we use the following formula:

*<mark style="color:green;">**PC = (TC × P%) / 100 + RC + IC**</mark>*

Where:

<mark style="color:green;">**PC**</mark> = prize pool for the bond issuance

<mark style="color:green;">**TC**</mark> = total RDTN transaction volume during the bond period

<mark style="color:green;">**P%**</mark> = percentage of transaction tax allocated to prize pool (i.e. 15%)

<mark style="color:green;">**RC**</mark> = unclaimed prize amounts from previous bond issuances

<mark style="color:green;">**IC**</mark> = returns from the DAO's investment portfolio

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