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Signal Rewards

Understanding the economic incentives and reward mechanisms is crucial for participating effectively in the Intuition signal economy.

Fee Structure​

Entry Fees​

When a user deposits tokens into an Atom or Triple vault:

  • A small fee is charged on the deposit
  • Fee goes to existing vault shareholders
  • Incentivizes early discovery and staking

Exit Fees​

When a user withdraws their stake:

  • A fee may be charged on redemption
  • Helps stabilize the vault
  • Discourages rapid speculation

Protocol Fees​

A portion of fees goes to:

  • Protocol treasury
  • Development funding
  • Network maintenance

Reward Distribution​

Share-Based Rewards​

When you stake on an Atom or Triple, you receive shares:

// Example reward calculation
const yourShares = 45
const totalShares = 1000
const ownershipPercent = yourShares / totalShares // 4.5%

// When new fees come in
const newFees = 100
const yourReward = newFees * ownershipPercent // 4.5 tokens

Bonding Curve Dynamics​

The bonding curve affects both:

  • Entry Price: Later stakers pay more per share
  • Exit Price: Early stakers can exit at profit if TVL grew

Example progression:

  1. First staker: 100 tokens β†’ 100 shares (1:1 ratio)
  2. Second staker: 100 tokens β†’ 90 shares (worse ratio)
  3. Third staker: 100 tokens β†’ 82 shares (even worse ratio)

Value Flow Examples​

Popular Identity Atom:

  • Thousands of Triples reference it
  • Queries constantly traverse through it
  • Early stakers earn fees from every interaction

Valuable Triple:

  • News services query it
  • Financial models reference it
  • Token holders earn from all usage

Economic Incentives​

Early Discovery Rewards​

  • First stakers get best prices
  • Accumulate more shares per token
  • Earn fees from all future stakers
  • Benefit from TVL growth

Quality Curation Rewards​

  • Staking on useful data generates ongoing fees
  • Popular Atoms/Triples attract more interaction
  • More interaction = more fees to distribute
  • Creates virtuous cycle for quality content

Information as Asset Class​

This creates an economy where:

  • Discovery is rewarded: Find and stake on useful data early
  • Curation has value: Your stake helps validate quality
  • Usage generates returns: Popular data pays dividends
  • Information becomes an asset: Data literally has owners who profit from its use

Calculating Expected Returns​

Factors Affecting Returns​

  1. Your Share Percentage: Higher ownership = more fees
  2. Vault Activity: More deposits = more fees distributed
  3. Usage Frequency: How often the data is queried/used
  4. Time in Vault: Longer staking = more fee events

Risk Considerations​

  • TVL Decline: If others withdraw, share value may decrease
  • Competition: Similar Atoms/Triples may fragment interest
  • Accuracy: False claims may lose support over time
  • Market Dynamics: Bonding curve means exit prices vary

Maximizing Rewards​

Strategies​

  1. Early Identification: Stake on valuable data before others
  2. Quality Focus: Choose Atoms/Triples likely to be used
  3. Long-Term Holding: Benefit from accumulated fees
  4. Diversification: Spread stake across multiple entities

Anti-Patterns to Avoid​

  • Staking on duplicate/redundant data
  • Following hype without substance
  • Short-term speculation
  • Ignoring signal quality

Next Steps​