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Reward claiming overview#

Each user delegating its vote power to an active price provider could earn rewards. The rewards are accumulated through the course of reward epochs, usually a few days long. Once each reward epoch finalizes the user can claim the rewards that were earned during this reward epoch.

The rewards are accumulated in the FtsoRewardManager contract and expire after an expiry period. The claim operation costs some gas - paid in SGB, and can be done for one reward epoch or a list of a few epochs at once.

The reward system distributes a large part of the yearly Songbird inflation to participants of the FTSO system. This could be seen as the mining process for the Songbird chain. During the first year of Songbird's existence, most of the 10% yearly inflation will be distributed to participants of the FTSO system. The distribution works such that the yearly inflation is divided into daily portions. That daily portion is split between all price epochs happening that day.

The FTSO system includes price feeds for USD prices of a few assets, Ex: BTC/USD, XRP/USD etc. Per price epoch one FTSO price feed is chosen to be rewarded. The reward is split between the addresses which submitted the most accurate prices.

The reward flow:

  • Per price epoch all price feeds to an FTSO are being used to calculate a weighted median.
  • The weighted median is the chosen price of this FTSO (time series).
  • Next, a percentage of the addresses on each side of the weighted median are chosen to be rewarded.
  • Each address is rewarded according to its weight (vote power)
  • The reward data is sent to the FtsoRewardManager smart contract.
  • once the reward epoch is finalized. this reward can be claimed from the FtsoRewardManager.

Each price provider receives reward according to its vote power. Those rewards can be claimed by the price provider and anyone who delegated its vote power to this price provider during this reward epoch.


Last update: 2022-06-29
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