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:

PC = (TC × P%) / 100 + RC + IC

Where:

PC = prize pool for the bond issuance

TC = total RDTN transaction volume during the bond period

P% = percentage of transaction tax allocated to prize pool (i.e. 15%)

RC = unclaimed prize amounts from previous bond issuances

IC = returns from the DAO's investment portfolio