> For the complete documentation index, see [llms.txt](https://docs.roamfi.net/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.roamfi.net/tokenomics/token-incentive-rules.md).

# Token Incentive Rules

### 1. Basic Unit

* Each fiat-based purchase triggers $RF token rewards.
* The initial reward pool is **2,000,000 $RF tokens**, i.e., for every $1 spent, users receive on average **200 $RF tokens**.
* For cumulative sales up to $100,000, the decay step is $10,000. For $100,000–$1,000,000, the decay step is $100,000. For $1,000,000–$10,000,000, the decay step is $1,000,000, and so on.
* The decay factor is **0.83**.

### 2. Decay Mechanism (cycle of $10,000 sales)

* First $10,000 sales: reward = **2,000,000 tokens**.
* Second $10,000 sales: reward = **2,000,000 × 0.83**.
* Third $10,000 sales: reward = **2,000,000 × 0.83²**.
* And so on, until the 10th $10,000 (total $100,000 in sales is completed).

### 3. Progressive Tiers (cycle of $100,000 sales)

After reaching $100,000 in sales, the next phase rewards are scaled up proportionally:

* Second $100,000 sales: reward = (10th $10,000 reward) × 10 × 0.83.
* Third $100,000 sales: reward = (previous phase reward) × 0.83.
* And so on, until the 10th $100,000 (total $1,000,000 in sales).

### 4. Higher Tiers ($1M, $10M, $100M, ...)

The same rules apply. In each large cycle, the 2nd phase reward = (last reward of previous cycle) × 10 × 0.83. All subsequent rewards continue to decay by a factor of 0.83.

### 5. User Distribution Method

Each sales phase reward ***R***<sub>***n***</sub> is distributed among users in proportion to their share of sales in that phase.

$$
U\_i = R\_n \times \frac{C\_i}{\sum\_j C\_j},
$$

Where:

* ***U***<sub>**𝑖**</sub> = number of tokens received by user 𝑖
* **𝐶**<sub>**𝑖**</sub> = spending of user 𝑖 in this phase
* **∑**<sub>**𝑗**</sub>**𝐶**<sub>**𝑗**</sub> = total spending of all users in this phase

## Key Design Features

* **Maximum Early Incentives:** \
  The first $10,000 in sales has the highest reward (2,000,000 tokens), attracting early users to participate quickly.
* **Gradual Decay Per Unit Consumption:**\
  Rewards decrease progressively with a **0.83 coefficient**.
* **Scaled Reset at Higher Tiers:**\
  Each new larger sales tier resets rewards based on the last reward of the previous cycle, multiplied before continuing decay.
* **Layered Exponential Decay Model:**\
  Ensures long-term scarcity of the token supply.

<figure><img src="/files/YyHRKDbnq9evRoOZww3k" alt=""><figcaption><p><strong>Step Chart:</strong> Acquisition Cost Per Token by Sales Cycle Progress in USD</p></figcaption></figure>

<figure><img src="/files/AEaE5rDP3geMqb82THH3" alt=""><figcaption><p><strong>Step Chart:</strong> Acquisition Cost Per Token by Sales Cycle Progress in Token</p></figcaption></figure>