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Token Rewards and Weight Power Flow
Summary: Let’s analyze the flow of Token Rewards through Pools in parallel with the flow of Token Power, and in particular Weight Power, as they are interdependent.
Governance->Concept->Token Rewards->Content
Token Rewards represents the number of Superalgos SA Tokens available to incentivize any particular definition in the Pools, Positions, Features, and Assets hierarchies. In other words, it’s the number of tokens available in any particular node, ready to be claimed by Contributors.
The Master Distribution Pool
Each release distributes a number of tokens as specified in the configuration of the top-level Superalgos Pools hierarchy. The head of this hierarchy is the master distribution pool, where it all begins in terms of the flow of Token Rewards.
Note: Visualize the flow of Token Rewards as a cascade starting at the head of the Superalgos Pools hierarchy that needs to trickle down to the different Pool nodes in the hierarchy, and then jump to the heads of other Project Definition Hierarchies.
Unlike the flow of Token Power within a User Profile, which is determined by configurations entered by the owner of the profile, the flow of Token Rewards is subject to the will of the Community. In other words, it is the community that must decide how rewards flow, and how many tokens must go to incentivize what.
This is Where Weight Votes Come in the Picture
Weight Votes are the instrument the Community uses to expresses how Token Rewards should flow. Token Rewards flow within the hierarchy in response to Weight Votes cast by the Community. That is, the Community decides the Weight of each Pool by casting Weight Votes.
This is where Token Rewards intersect with Weight Power, as it is Weight Power that drives the flow of Token Rewards through Weight Votes.
Note: Remember that your Token Power flows into the different programs available under your User Profile. The portion of Token Power that flows into your Voting Program turns into Voting Power, which is channeled through different types of switches. You use Weight Votes Switch nodes to turn Voting Power into Weight Power that then flows into Weight Votes.
For Example
When you reference a Pool node with a Pool Weight Vote node, you are conferring the Weight Power in your Pool Weight Vote to that particular Pool node.
Now that this Pool node has some Weight, the Token Rewards available at the top of the hierarchy may flow into this Pool node. How much? It depends on the Weight Power the Pool gets relative to the Weight Power the rest of the Pools in the hierarchy get!
Governance->Concept->Weight->Content
The Weight of a node is a direct proportion of the Weight Power coming into the node divided by the total amount of Weight Power coming into the whole hierarchy, and multiplied by 100, to express it as a percentage.
Weight (of a node) = Node's Incoming Weight Power /
Sum of Weight Power in the Hierarchy * 100 Token Rewards Flow Into Other Hierarchies
When a Pool node in the Superalgos Pools hierarchy gets some Weight Power, the Token Rewards flowing to the node are immediately passed on to the referenced hierarchy. So, now the referenced hierarchy has Token Rewards of its own at the head of the hierarchy!
How do Token Rewards flow within these secondary hierarchies? In the exact manner! When Weight Votes are cast within the hierarchy, Token Rewards flow into the affected nodes in proportion to the Weight calculated within the scope of the hierarchy.
Important: The scope of the calculation of Weight proportions is limited to the hierarchy in question.
Note: The cycle goes on and on through all the existing levels of nested hierarchies. The processes and flows are the same regardless of the type of hierarchy.