RESTRICTIONS

Near-Zero Market Impact Rewards Distribution System

we have seen how  io.net  blockrewards distribution to the workers keep impacting the price due to imminent sell pressure on reward distribution date, in all the rewards programs mentioned before like the infra or the agents, rewards are only claimed in stablecoins, meaning that the O Coin is going to be sold in the open market using our own quant systems responsibly ( powered by  o.capital  ) without impacting the price on a period of 16 and up to 42 days, for each earned $O coin,
meaning that the rewards that are being earned by any of the pools, can only represent 5-10% of the sell volume in the market and not more. this rule applies to any sell operation the company does, for example automated treasury sells, will only equal to 10% of the market volume of the related training pair wherever it is listed this strategy is called Percent of Volume (POV) Strategy,
he Percent of Volume (POV) strategy is an algorithmic trading technique designed to execute trades by targeting a specific percentage of the total market volume over a specified period. This strategy is particularly useful for managing large orders in the crypto market and its designed to dynamically adjust the order size based on the prevailing or forecasted market volume in real-time. Unlike Time-Weighted Average Price (TWAP) or Volume-Weighted Average Price (VWAP) strategies, which follow fixed schedules, POV algorithms change their trading pace in real-time to ensure a consistent participation rate, including our crypto coin $O.

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This visual example helps illustrate how the POV strategy dynamically adjusts the order size based on the prevailing market volume to maintain a consistent participation rate.
  • Market Volume (Blue Bars): The blue bars represent the total market volume of $O traded in each interval.
  • POV Order Size (Red Line): The red line with markers indicates the POV order sizes calculated based on a 5% participation rate. For example, in the first interval (10:00-10:05), the market volume is $O 2000, and the POV order size is 100 (5% of $O 2000).
This visual example helps illustrate how the POV strategy dynamically adjusts the order size based on the prevailing market volume to maintain a consistent participation rate.