Can you please share in your own words, what are SmartRewards?
Most of cryptocurrencies aren’t accessible to public in full - new coins are being issued at a certain speed every block. In bitcoin all issued coins are received by miners as a reward for their work. So newly issued coins every block are known as block rewards.
In SmartCash only 5% of block rewards go to miners while 15% of block rewards are collected in SmartRewards balance.
On 25th of every month there is a process called snapshot. During this process all the SMART addresses that have at least 1000 SMARTs are being included in the list. Let’s call such addresses eligible. After a month, again on 25th, eligible addresses are checked whether or not there were outgoing transactions. Simply speaking, was a single SMART (even a fraction counts) spent from them? If not, the address is getting SmartRewards proportionally to the amount it has.
SmartRewards balance: 500 SMARTs
Eligible address N1: 1000 SMARTs
Eligible address N2: 2500 SMARTs
Eligible address N3: 10000 SMARTs
Let’s take the amount on all addresses as 100%, then
Eligible address N1: 1000 SMARTs (7.48%)
Eligible address N2: 2500 SMARTs (18.52%)
Eligible address N3: 10000 SMARTs (74%)
So the SmartRewards will be:
Eligible address N1 reward: 500 x 0.0748 = 37.4 SMARTs
Eligible address N2 reward: 500 x 0.1852 = 92.6 SMARTs
Eligible address N3 reward: 500 x 0.74 = 370 SMARTs
Such an idea was introduced as a price stabilisation mechanism to fight volatility and stimulate holders. The numbers of current SmartRewards round can be found here: http://smartrewards.cc/
you are amazing for explaining it this way
The best explanation and examples thus far!
Your explanation really helped me learn what SmartReward it in a reading. Thanks