Yield & Mining Share

P2X's yield strategy offers up to 2X ROI on PLS deposits by using a bonus bag for extra yields. It ensures fair mining shares and promotes ongoing engagement with the protocol.

Yield Accrual by Mining

In the P2X protocol, mining PLS coins is not only a means of participating in the ecosystem but also a way to earn yield. Here's how yield accrual works:

• Calculation of Yield: PLS deposited in the Auction House is proportionally converted to a share per depositor for that day.

• Miner ROI: Miners have a maximum ROI of 2X if left in the Auction House mining contract.

• Bonus Bag: There will be a bonus bag that earns yield outside of the protocol's yield generation mechanism. That bag will have PLS available to miners when they meet certain criteria. See Bonus Bag.

Impact on Mining Share

While yield accrual is a significant benefit for miners, it's important to understand its impact on the mining share:

• Mining Share: In the P2X protocol, accrued yield does not directly increase the miner's share in the mining pool.

• Capped mining ROI: Since the max ROI is capped at 2X, large holders will only delay their 2X cap if they enter in any one day with a large amount. Thus, it would be more beneficial for large holders to spread their deposits over several days and/or several miners.

• Reinvestment Opportunities: Miners have the option to reinvest their accrued yield and/or principle after claiming their miner.

Bonus Bag

• Bonus Bag Purpose: The bonus bag's sole purpose is to collect yield from the benevolent wallet (BW) to distribute to users at certain ROI criteria.

• Bonus Bag eligibility: Bonus bag availability will come available at a certain time after launch, TBD by the team. When miners reach a 1.5X ROI, they will be eligible to access the bonus bag's PLS tokens. If miners choose to mine those tokens from the bonus bag, the miners will end afterwards, and the user can collect their PLS when it is available as per the contract day ending.

• Bag amounts: The available amount of PLS in the bonus bag will vary every day. Users mining or not mining the PLS will dictate the total as well as the deposit from the BW. In some cases, depending on user participation and market sentiment, a user could mine to more than a 2X ROI.

• Bonus Bag collection window: The bonus bag eligibility for miners will exist for only 5 days. The following percentages will dictate how much each miner can mine from the bag proportionally to the mining shares they own from the Auction House.

  • Day 1: 100% of the proportional share

  • Day 2: 80% of the proportional share

  • Day 3: 60%of the proportional share

  • Day 4: 40% of the proportional share

  • Day 5: 20% of the proportional share

  After day 5, miners will no longer be eligible for the Bonus Bag PLS coins and will have the choice of either ending their miner at a 1.5X plus 5 days accrual or anytime thereafter, up to the 2X ROI point.

Conclusion

Understanding the relationship between yield accrual and mining share is crucial for participants in the P2X protocol. While accruing yield adds value to the user's miners, it does not directly affect their mining share, emphasizing the protocol's focus on sustainability. This design aligns with the protocol's aim to encourage sustained engagement and investment within the ecosystem.