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# Oracle Rewards

The Oracle Reward System is designed to reward both **meaningful contribution** and **consistent participation**. Instead of distributing 100% of each reward pool linearly according to Oracle Points, rewards are now divided into two components: **75% Contribution Rewards** and **25% Leaderboard Rewards**.

### 75% — Contribution Rewards

The first 75% of the reward pool is distributed according to each user's Oracle Points, using a **diminishing-returns formula**:

Contribution Weight=Oracle Points0.7\text{Contribution Weight} = \text{Oracle Points}^{0.7}

Each user's share is calculated relative to the total weighted points of all eligible users:

Contribution Reward=75%×User Points0.7∑(All Eligible Points0.7)×Reward Pool\text{Contribution Reward} = 75\\% \times \frac{\text{User Points}^{0.7}} {\sum(\text{All Eligible Points}^{0.7})} \times \text{Reward Pool}

This means users with more Oracle Points continue to receive larger rewards, but the difference between very large and smaller point balances is reduced. For example, a user with 6M Oracle Points still has a substantially larger contribution weight than a user with 1M points, but not six times the weight.

### 25% — Leaderboard Rewards

The remaining 25% of the reward pool is distributed according to **leaderboard rank**.

With the current rank-decay setting of **1**, the rank weight is:

Rank Weight=1Rank\text{Rank Weight} = \frac{1}{\text{Rank}}

Therefore, higher-ranked users receive a larger share of the leaderboard pool, while users further down the leaderboard still remain eligible for a portion of the rewards.

Leaderboard Reward=25%×1/User Rank∑(1/Eligible User Ranks)×Reward Pool\text{Leaderboard Reward} = 25\\% \times \frac{1/\text{User Rank}} {\sum(1/\text{Eligible User Ranks})} \times \text{Reward Pool}

### Total Oracle Reward

Each eligible user's final reward is the combination of both components:

Total Reward=Contribution Reward+Leaderboard Reward\boxed{ \text{Total Reward} = \text{Contribution Reward} + \text{Leaderboard Reward} }

#### Example

If the total reward pool is **100,000 $HILO**:

| Reward Component     |        Pool |
| -------------------- | ----------: |
| Contribution Rewards |  **75,000** |
| Leaderboard Rewards  |  **25,000** |
| **Total**            | **100,000** |

A user's final reward therefore depends on **both their Oracle Point contribution and their leaderboard position**.

#### Why this system?

The new distribution is designed to prevent a small number of very large Oracle Point holders from receiving an excessive percentage of the reward pool while still recognizing their greater contribution. Users with millions of Oracle Points continue to have a higher contribution weight, while the diminishing-returns formula gives smaller users a more meaningful share. The separate leaderboard pool also rewards users for maintaining a strong position among eligible participants.

**Nothing changes about how Oracle Points are earned or how the leaderboard is calculated. Only the distribution of the reward pool has changed.**


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