3.5. Smart Dividends

Steve Jobs was known for his reluctance to pay dividends to Apple shareholders. While it may have been a prudent decision for Apple, in DeflationCoin, investors are a key element of the ecosystem.

For those who stake their coins for 2 years or more, the Smart Dividends mechanism provides monthly payouts to stakers, consisting of two components:

• A partial release of tokens from the personal wallet;

• Dividend rewards paid from the global pool with consideration of the X-multiplier.

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Payouts are made monthly based on the following formula:

$$W=\frac S M +D$$

Formula Parameters:

• W - monthly payout;

• S - total number of coins in staking;

• M - originally specified staking duration in months;

• D - dividends paid from the global pool with the X-multiplier applied.

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Before dividends are paid, a global pool is formed each month from the following income sources:

• Coin deductions according to the "Smart-Burning" mechanism.

• Smart fees.

• Elements of the Deflationary Ecosystem, such as the Educational Platform, Gambling, and more.

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The final dividend share, adjusted with the X-multiplier, is calculated using the following formula:

$$D = \frac{S_{(\text{№})} \cdot X_{(\text{№})} \cdot P \cdot 100}{S \cdot \beta_{(S)}}$$

Formula Parameters:

• D - Dividends paid to the smart-staking participant. The base calculation formula is:

$$D = \frac{\alpha(x)_{(N^\circ)} \cdot P}{100}$$

• P - Pool income, the total amount of dividends distributed among participants;

• $a(x)$ - Final ownership share, adjusted for the X-multiplier and expressed as a percentage. The calculation formula is:

$$a(x)_{(N^\circ)} = \frac{\beta_{(N^\circ)} \cdot 100}{\beta_{(S)}}$$

• ${\beta_{(S)}}$ - Total ${\beta}$-score of all wallets;

• $\beta_{(N^\circ)}$ - Intermediate ownership share for a specific wallet, adjusted for the X-multiplier. The calculation formula is:

$$\beta_{(N^\circ)} = \alpha_{(N^\circ)} \cdot X_{(N^\circ)}$$

• $X_{(N^\circ)}$ - X-multiplier for a specific wallet;

• $\alpha_{(N^\circ)}$ - Ownership share of coins, expressed as a percentage. The calculation formula is:

$$\alpha_{(N^\circ)} = \frac{S_{(N^\circ)} * 100}{S}$$

• $S_{(N^\circ)}$ - Number of coins in a specific wallet;

• S - Total number of coins from all wallets participating in smart-staking.

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Important!

• Smart dividends are not mandatory. If a staker prefers to accumulate capital in the long term by leveraging compound interest and the law of exponents, they can opt out of the monthly payout function and continue accumulating coins until the funds are unlocked.

• According to the formula, dividends are capped by the amount accumulated in the pool for the month. Stakers with higher X-multipliers receive a larger share of the pool, with no additional coin issuance involved.

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A distribution example is presented in the next table. For demonstration purposes:

• Pool income (P) is set to 130.

• Random values are used for the X-multiplier and number of coins in smart-staking.

Table №3: Example Calculation of "Smart Dividends"

If a participant in Smart-Staking has not activated the Smart Dividends mechanism every month or has not activated it at all, the remaining coins will be unlocked according to the "Gradual Unlocking" mechanism (Section 3.6) upon the completion of Smart-Staking.