2.4.2 Fee Pool and Reward Distribution

To encourage more users to participate in the MemePrediction market, LuckyMeme will establish a fee pool. When users participate in the prediction market, the platform will charge a certain fee. This fee pool not only generates continuous revenue for the platform but also helps to replenish the prediction reward pool, further attracting more users. The collected fees will be distributed based on users' prediction accuracy.

The actual reward distribution from the fee pool mainly depends on the user's accuracy and bet amount:

Where:

  • Ruser​ is the user's reward;

  • Suser​ is the user's bet amount in the prediction market;

  • Stotal​ is the total bet amount of all users;

  • Fpool​ is the total amount in the fee pool;

  • Paccuracy​ is the user's prediction accuracy.

Thus, the user's reward is not only proportional to their bet amount but also related to their prediction accuracy. This mechanism ensures fairness on the platform and encourages users to make more precise market analysis and predictions.

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