With the Voyage snapshot taken, we are now in the final stages of crunching the data ready for TGE.
This includes incorporating a bonus for loyal community members: The Loyalty Bonus.
In this blog, we explain why we are implementing a Loyalty Bonus and provide a brief overview of how it is calculated.
Why have a Loyalty Bonus?
Voyagers experienced many twists and turns, with Swell continually evolving to capture new markets and growth – all the way from liquid staking with swETH to restaking with rswETH, and eventually Swell L2.
Those who stuck with us along the way deserve to be rewarded, regardless of the amount they staked.
For this reason, within the 8% of the SWELL supply allocated to the Voyage, 1% will be allocated to a Loyalty Bonus. The other 7% will be allocated linearly based on Pearl holdings.
How does it work?
The Loyalty Bonus takes into account both your earliness and your commitment to the protocol over time.
1. Earliness
Earlier Voyagers took the risk of joining a nascent protocol and provided contributions that were invaluable to our early growth.
For that reason, they get a higher weighting in the Loyalty Bonus. This weighting is determined by dividing the Voyage into four Epochs from mainnet launch to snapshot, and then assigning a number based on when the earning of Pearls began.
Over time, the weighting falls in a squaring pattern, shifting rewards heavily towards those who joined in the earliest stages of the Voyage.
2. Commitment
In addition to the joining date, the Loyalty Bonus also takes into account continued participation.
To achieve this, the original weighting is multiplied by the difference in the amount of Pearls at the transition between each epoch. For example, if you earned 100 White Pearls in Epoch 1 and 120 White Pearls in Epoch 2, your multiplier for that epoch would be 1.2.
This number is normalized for increasing Pearl rates through the Voyage by dividing it against by the average ratio of the entire Epoch change. A minimum of 0.5 is used to represent non-participation, and a maximum of 1.5.
Summary
The Loyalty Bonus calculation can be summarized as:
Starting Bonus * epoch change ratio_1 * epoch change ratio 2 * epoch change ratio 3
For example...
Alice bought $250 of swETH in Epoch 1 and stayed until Epoch 4, earning more Pearls in each epoch by continuing to chase the most lucrative Pearl-earning opportunities.
16 * 1.2 * 1.3 * 1.4 = 34.9 Loyalty
Bob on the other hand bought $100,000 of rswETH in Epoch 3 and stayed until Epoch 4, but earned fewer Pearls in Epoch 4.
4 * 0.7 * = 2.8 Loyalty
As shown, Alice's loyalty nets her a much bigger bonus than Bob — despite having deposited less ETH.
FAQ
Is the Loyalty Bonus impacted if I engaged with Swell from different wallets?
Yes, the Loyalty Bonus can only be applied to one individual wallet.
If you have engaged with Swell from multiple wallets without acting as a Sybil, then you will receive a Loyalty Bonus for each wallet.
Is the Loyalty Bonus impacted by the amount of assets that I deposited?
No, the amount of deposited assets has no bearing on how the Loyalty Bonus is calculated.
This is because the Loyalty Bonus is designed to reward early commitment and continued participation, rather than large deposits.
Is the Loyalty Bonus impacted by the total amount of Pearls that I earned?
No, the bonus doesn't take into account the total amount of Pearls earned.
It only takes into account the difference in the amount of Pearls earned between epochs.
