Qualoo Whitepaper
  • Qualoo Whitepaper: Overview
  • Introduction
    • Internet landscape
      • Trends in telecommunications industry driving need for change
      • Current industry benchmarking is not fit for purpose.
      • Quality of Service (QoS) and Quality of experience (QoE)
      • Current challenges in the telecommunications / internet industry
        • No single ISP possesses enough high-quality data on internet performance
        • Data sharing within the industry is not a common practice
        • ISPs encounter difficulties in accessing and utilizing data within their own organizations
        • End users typically have limited visibility into internet performance
      • What happens when a user browses the internet?
      • What are the key components of internet infrastructure?
      • What does an Internet Service Provider (ISP) network look like?
      • How do ISPs monitor their networks?
  • Qualoo work supporting ASEAN Digital Masterplan
  • Design Principles for Qualoo
  • How Qualoo works
    • Overview
    • Decentralized Physical Test Network
      • Test Nodes
      • Standard testing process
      • Custom testing process
      • Connectivity test types
    • Analytics Platform
  • Product Offering
    • Client Data and Insights Platform (B2B)
    • Node Types
    • Qualoo Consumer Features
    • Clients Segments: Definitions and Use Cases
    • Target State
  • Qualoo Economy
    • Qualoo Economy Design Principles
    • Key economic activities
    • QXT Token Utility
    • Test Rewards Design
    • Token Allocation
    • Token Circulation
  • Blockchain
    • Interactions with Blockchain
    • Rationale for using blockchain
  • Qualoo Foundation
  • Qualoo Green Impact Sustainability & Environment
  • The Future
Powered by GitBook
On this page
  • Overview
  • Rewards pools
  • Standard testing rewards pool
  • Custom testing rewards pool
  • Distribution of rewards to network participants
  • Token rewards prior to token generation event (TGE)

Was this helpful?

  1. Qualoo Economy

Test Rewards Design

PreviousQXT Token UtilityNextToken Allocation

Last updated 3 months ago

Was this helpful?

Overview

Participants in the Test Network conducting tests are entitled to both financial and non-financial incentives. This section elucidates the ways in which users can earn financial rewards in the form of QXT tokens.

Rewards pools

Two main reward categories exist: standard testing and custom testing. Each category is funded separately, and while the beneficiaries might overlap, they are not identical. Custom testing reward recipients constitute a subset of the larger group of standard testing reward recipients. There is no reward pool for airdrops as their distribution to Test Network participants aligns with Qualoo's marketing activities and roadmap.

Standard testing rewards pool

The standard testing rewards pool receives allocations from two sources: the ecosystem rewards allocation and client revenue accrued from standard products. Initially, the ecosystem rewards allocation predominantly fuels this pool, but client revenue will take precedence as demand escalates over time.

Ecosystem rewards allocation

The release of the ecosystem rewards allocation is steered by two factors:

  • Baseline release: This is based on a simple exponential decay model with a three year half-life.

  • Scaling factor: This factor, which takes the ecosystem's growth into account, is applied on top of the baseline.

The scaling factor adjusts rewards downward initially when the number of network participants is low. As the ecosystem expands, the release schedule factoring in the scaling factor converges to the baseline release schedule.

Client revenue (Standard Products)

Client revenue paid to Qualoo is employed to fund ecosystem rewards, influenced by multiple underlying mechanisms:

  • Client cashflow: Specifically it is client payment flows received by Qualoo within a period of time (e.g. month) that drive this portion of rewards

  • Rewards Replenishment: Upon receiving payment from clients, a predetermined percentage of revenues are redistributed into the ecosystem. This percentage can never be lower than 10% but can be adjusted upwards.

  • Secondary Market Token Purchase: This shared revenue is then used to buy tokens on the secondary market, which are allocated to various ecosystem benefits:

    • Staking Rewards: Some tokens are set aside for staking rewards (approximately 80%)

    • Token Rewards: These tokens contribute to the Standard testing rewards pool.

Custom testing rewards pool

The custom testing rewards pool is exclusively financed by the revenue clients provide for custom tests. This pool is not singular; it consists of several sub-pools, each differentiated based on the respective custom tests.

Here, the Network Allocation Factor plays a role, wherein a specified portion of the revenue is shared with the Test Network participants involved in those tests. This allocated revenue is used to purchase QXT tokens on the secondary market, which are then added to the Custom testing rewards pool.

Distribution of rewards to network participants

Standard testing rewards

On a regular basis, rewards are made open for network participants to claim. The guiding principle is that participants should be compensated based on the value they contribute to the network. Therefore, several factors influence individual allocations for standard testing rewards:

  • Location: High-priority and underserved regions receive greater rewards.

  • Test Node Type: Fixed Test Nodes receive larger rewards than Mobile Test Nodes.

  • Data Submissions: Users consistently submitting data more frequently earn more rewards.

  • Connectivity Test Types Performed: More challenging tests (e.g., bandwidth) are given higher rewards.

  • Ecosystem Participation: Active participants in the ecosystem (e.g., long-term stakers) receive enhanced rewards.

Each month, each Test Node is given a performance score reflecting its contribution and offered guidance for future improvements. Users who fail to meet a minimum participation threshold will not be eligible for token rewards (e.g., a user whose Test Node submits only one set of test results in a month). Participants with high performance scores have an added advantage that they have a higher likelihood to be chosen for custom testing rewards.

Custom testing rewards

Fewer factors are taken into account when allocating tokens for custom testing. Rewards are mainly distributed based on Test Node type, the number of data submissions, and the types of connectivity tests performed.

Token rewards prior to token generation event (TGE)

Participants in the Test Network can start earning rewards even before the Token Generation Event (TGE). These rewards come in the form of QXT Points, which serve two key purposes:

  1. Contribution Metric: QXT Points track and measure each participant's level of contribution to the network.

  2. Airdrop Eligibility: After the TGE, these points will be used to determine airdrop allocations, rewarding early contributors for their efforts and engagement.

This system incentivizes active participation and ensures that early supporters are recognized and rewarded in proportion to their contributions.