You’re probably itching to understand how your rewards are distributed and how the mining model works. You may have asked various questions in time past, including:
- Why am I earning this?
- How are my earnings similar to that of a nearby friend?
- I have consumed a lot of data, yet my earnings have not gone up. Why?
The Wicrypt Network is based on a unique but complex model that allows the Wicrypt Network scale without causing inflation of tokens. This ensures that users earn fairly as they support the growth of the first decentralized internet network.
Basically, the system rewards users with the Wicrypt Network Token $WNT for providing connectivity in the network via the business mode after fulfilling certain criteria.
(Disclaimer: This article cannot cover in detail the complexity of the Wicrypt reward model, as that can be found in the Whitepaper (https://whitepaper.wicrypt.com/), but this is a summary of how it works and should give you an idea of its parameters. If further specifics are required, revert to the Wicrypt tokenomics and Whitepaper.)
To understand the idea of the Wicrypt Reward system, there is a need to understand the goal Wicrypt aims to achieve. This aim is to create a decentralized network in which everyone is empowered as a key stakeholder in the network. Its goal is to build a community that empowers each other by creating hosts who earn by sharing internet connectivity with others. In this case, the host can be seen as those that keep the network up.
In order to be able to earn rewards on the Wicrypt Network there are a few criteria that must be met. Rewards are distributed using a Markov Chain system and has no memory of the past, nor does it anticipate the future. In simple terms, you are only rewarded for the week you meet the criteria for earnings. Hence, your overall total used, and overall connections has no effect, if any, if the criteria is missed.
Think about it this way, you meet the criteria this week, parameters are computed this week and reward is given for this week, then it returns to a clean slate for the next reward cycle. For anyone on the Wicrypt system, think of it as a weekly campaign rather than monthly or yearly. So focus on attaining the criteria and parameters for each week. See below criteria that must be achieved or retained to earn per week:
- You must stake $WNT via your Staking platform (https://stake.wicrypt.com/). Kindly note, if you unstake and have a staking balance less than $100 worth of $WNT at any point in the system, you will stop earning on the network.
- Must have your device registered and set in Business mode.
- Must connect the Wallet address used to stake to the user dashboard (preferably do this on desktop, as oftentimes mobile Metamask is not as effective). This binds your staking wallet address with your mining account.
I will provide a few parameters that govern how rewards are distributed within a network. It is important to keep in mind that this article does not cover the priority and specifics of each of these parameters, because the system is being engineered as a Machine Learning system which self-trains itself as it progresses, so that major parts of the system are independently governed by the model.
Parameters considered that influence earnings after meeting criteria on the network:
Staking score : This is seen as the most important parameter in the network as it gives credence to your willingness of being in the network. The staking score is also determined on a few conditions:
- Total amount staked.
- Type of staking (fixed or flexible). Fixed is always the most preferred.
- How long is your staking period (6–12 months advisable).
- How often you claim your rewards on the staking platform.
- How often do you re-stake your claims.
Economic priority/value of your area, city, or country: Specifics for this are not provided, but Wicrypt connects its system to international economic databases that computes the economic geographical viability of different cities, regions, and countries. In simpler terms, it means that value is accorded to some areas more than other areas. For example, someone in a remote area will mine more than someone in a big city, but for the first few months after mining, most cities will have the same economic value. As time goes on, and as adoption increases, these values will change to properly support remote areas without internet connection, so people will be incentivized more if they actually provide internet infrastructure in those areas.
Number of Network pool of devices in each Tier: At the time of writing, Wicrypt has 3 device Tiers:
- Tier 1 (Originals backed with an NFT ): Devices minted on the Wicrypt Device NFT (i.e. https://nft.wicrypt.com/ ).
These are the Lynx and Spider devices that are backed by an NFT. To confirm if your device is backed by NFT, scroll to the explorer on the dashboard and click the tab “MY NFT Devices”. If you happen to see a device here, sync that NFT to any of your physical devices. Immediately you are ranked in Tier 1.
NB: Minting on the Device NFT page cost $1000 USDT/USDC for Lynx and $1,500 USDT/USDT for Spider.
- Tier 2 (Originals backed with no NFT): This is the Lynx and Spider devices not backed with an NFT. If you have a new device and you pop to the “My NFT Devices” on your dashboard and there is no NFT image there, you fall within this category.
- Tier 3 (The Basic): This is the first version of the Wicrypt Lynx and Spider devices.
The way this tier works is in such a way that the reward system each week is determined based on its time series analysis using Autoregressive Moving Average (ARMA) to understand stationary stochastic time and interval points. In this sense, there is an infimum (i.e. minimum) and a supremum (i.e. maximum) total of $WNT tokens to be shared by all devices in each tier weekly. This accounts for some scenarios in which earnings of devices having similar points if most of the parameters are similar or sometimes the same.
Population Density within your city and region: For example, if you are in a city with a large population and the number of Wicrypt hosts in that city are small, you will earn much more compared to users in a city with a lot of Wicrypt hosts.
Connectivity Density: This is the number of hosts within a given area. What determines the size of an area which is solely determined by the model and is governed by the geographical sparsity of the devices in the network. It could be a 500 metres radius, city, state, region, or a country. Devices in the same area or region tend to share similar points with each other.
Number of weekly unique connections and uptime: As hosts are considered to be stakeholders in this chain, Wicrypt rewards uptime of devices and unique connections of each device to keep the network active. Unique connections refer to unique devices that connect to the host. For example, if you have only one device (like a smart TV or mobile phone) connecting to your Hub while another host has 10 different unique mobile phones, smart TVs, smart refrigerators connecting to his/her hub, the latter will mine more $WNT.
Average weekly bandwidth: This aligns with the earlier point. To keep the network active, internet connectivity must be provided by the host, which is used by users connecting. The key word here is “average weekly” as the reward system only considers each week. Therefore, it’s important to debunk the misconception of Total data sold, although this contributes to the average weekly bandwidth. It does not directly influence the reward system. This is because for a business to sell data it is understood that you have earned using your billing rate and the total data used contributes to your average weekly bandwidth.
There are a few other parameters (eg. consistency, number of devices owned, length of time in the system, etc.) in which the Wicrypt system uses to govern its rewards system, but I have focused on some of the key ones for now. Others can be explored in later episodes.
Wrapping things up, a simulation of the Wicrypt reward system can be found on the Wicrypt website using the reward calculator (https://wicrypt.com/#calculator). The calculator is a simulated experience which is updated periodically as the network progresses. Thus, outcomes of the reward calculator are not actual and may provide a probabilistic view of possible earnings for that period (i.e. week) based on the parameters provided.
Wicrypt system is community-driven, so to enjoy the benefits and have a grasp of the Wicrypt reward system, it is important to understand our goal of a decentralized internet sharing network. Having studied the Wicrypt tokenomics, it is truly very rewarding to key into the Wicrypt Network as a stakeholder, becoming an outlier, or “a round peg in a square hole”, to create a decentralized system powered by you.