3.3 Endowment Fund
Some of you must be intrigued and are wondering what an Endowment Fund is. In previous updates, we released land claim and Scholarz Genesis staking. There has been a lot of questions like "what can these updates do?". Please allow us to introduce the crossover feature between our $EXP tokenomics and Skoolverse Land utility! It is a big update and a relatively complex one to build.
Endowment Fund is simply a fund that will be accumulating $EXP from several source and redistributed back to Scholarz holders that staked their Scholarz and basically showed undying support and faith in the team's capacity to deliver. The Endowment Fund balance will be accessible and claimable by owners of active House Level 1 by means of gradual distribution. Think of it as treasury that pools $EXP from the ecosystem and is channeled back to you
There will be 4 important parts you have to know about Scholarz Endowment Fund:
Purpose
Fund Accumulation Method
Distribution Method
Weighting of Ownership
Let us walk you through each points. 1. Purpose: to reward you, our supporters, for ownership and participation in Scholarz ecosystem. It may be from staking or simply participation in community activities.
2. Fund Accumulation Method: Funds will fill up from 3 sources and global balance will be shown real-time: - Buy tax recovery -> Our system will read every burn resulting from 10% buy tax in smart contract and for every tax transaction, similar amount of burn will be emissioned back to Endowment Fund. This will be active immediately as soon as $EXP liquidity is up. - Manual $EXP buyback -> As mentioned, there will be a portion of sell tax (5% out of 10% overall) that will be allocated to buyback $EXP from DEX and the purchase balance will be added fully to Endowment Fund. - Emission loss recovery* -> As we are implementing capped and targeted amount of emission, there will never be unprecedented inflation, but rather lower emission than estimation. Emission loss recovery will act as balancer in this situation and the gap will be sent to Endowment Fund. For example, supposed there should be 60,000 $EXP emission for trivia homework. But when there are 80% correct answers, only 48,000 $EXP will become emission for homework doers and the remaining 12,000 $EXP will go to Endowment Fund. Along the way, we will be using emission loss recovery balance as incentive pool as well to reward activity in Scholarz Discord or other special homework and quest that might appear occasionally.
*please note that Emission loss recovery will not active immediately but several weeks after Endowment Fund has been launched.
3. Distribution Method: $EXP balance in Endowment Fund will be distributed by 5% daily and calculations goes real-time and visible to all House owners. UI for claimable $EXP from Endowment Fund is available already. There will be ~1 week accumulation period before Endowment Fund starts distribution. We are targeting distribution to start on 14 March 2022 00:00 UTC.
4. Weighting of Ownership: This is where first land structure, House level 1 and staked Scholarz Genesis will play a critical role. All staked House level 1 owners will receive distribution from Endowment Fund proportionally. Formula of the weight will be (# of your staked House / Total staked House). When your House is upgraded to level 2, its weight and contribution to Total staked House will double as well. For example, John has 2 staked Houses, there are 100 total staked Houses and Endowment Fund Balance shows 100,000 $EXP. Then, each day John will receive ((2 / 100) * 5% * 100,000 $EXP) or 100 $EXP.
Last but not least, we are truly thankful for the trust given by stakers from day 1. Hence, we decided to reward 5% of accumulated Endowment Fund Balance equally to all Scholarz that have been staked for more than 4 weeks or 2.419.200 seconds. 😄 This will be a one-time only reward and not recurring. Will be distributed on 14 March 2022.
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