BPL Emissions Rewards Math (Simplified)

This document explains how BPL inflation rewards are calculated and distributed to Gem/AI contributors.

The Big Picture

BPL has annual inflation (e.g., 8%). A portion of this goes to AI/Gem ecosystem participants based on two factors:

Market Cap - How valuable is your Gem compared to others?
Proof of Contribution (PoC) - How much did you contribute to that Gem?

Key insight: Market Cap comes FIRST, then PoC comes SECOND.

The Flow (Diagram)

                    ┌─────────────────────────────────────┐
                    │     8% Annual BPL Inflation         │
                    │    (~10,000 BPL/day example)        │
                    └────────────────┬────────────────────┘
                                     │
                                     ▼
                    ┌─────────────────────────────────────┐
                    │       x/distribution module         │
                    │   (receives newly minted BPL)       │
                    └────────────────┬────────────────────┘
                                     │
              ┌──────────────────────┴──────────────────────┐
              │                                              │
              ▼                                              ▼
     ┌────────────────┐                          ┌────────────────────┐
     │  50% to        │                          │  50% SIPHONED to   │
     │  Validators/   │                          │  x/brahma module   │
     │  Delegators    │                          │  (5,000 BPL/day)   │
     └────────────────┘                          └─────────┬──────────┘
                                                           │
                          STEP 1: SPLIT BY MARKET CAP      │
                    ┌──────────────────────────────────────┘
                    │
                    ▼
    ┌───────────────────────────────────────────────────────────────┐
    │              Rolling Average Market Cap Split                  │
    │                                                                │
    │   GemA (60% of total market cap) → 3,000 BPL                  │
    │   GemB (25% of total market cap) → 1,250 BPL                  │
    │   GemC (15% of total market cap) → 750 BPL                    │
    └───────────────────────────────────────────────────────────────┘
                    │
                    │  STEP 2: SPLIT BY ROLE (for each Gem/AI)
                    ▼
    ┌───────────────────────────────────────────────────────────────┐
    │                   For GemA (3,000 BPL):                        │
    │                                                                │
    │   ┌─────────────┐  ┌─────────────┐  ┌───────────────────────┐ │
    │   │  Creator    │  │   dApp      │  │    Contributors       │ │
    │   │   40%       │  │   20%       │  │       40%             │ │
    │   │  1,200 BPL  │  │   600 BPL   │  │      1,200 BPL        │ │
    │   └─────────────┘  └─────────────┘  └───────────┬───────────┘ │
    └───────────────────────────────────────────────────────────────┘
                                                      │
                    STEP 3: SPLIT BY PoC (Cores)      │
                                                      ▼
    ┌───────────────────────────────────────────────────────────────┐
    │         Contributor Pool for GemA (1,200 BPL)                  │
    │                                                                │
    │   @user1: 50% of Cores → 600 BPL                              │
    │   @user2: 30% of Cores → 360 BPL                              │
    │   @user3: 20% of Cores → 240 BPL                              │
    └───────────────────────────────────────────────────────────────┘

The Three Steps Explained

Step 1: Market Cap Split

Each Gem gets a proportion of the siphoned rewards based on its relative weight compared to all other Gems.

GemAllocation = SiphonedBPL × (GemWeight / TotalWeightAllGems)

Current Implementation (Supply-Based)

Currently, the "market cap" metric is based solely on gem supply (ERC1155 totalSupply):

GemWeight = rolling_average(gem_supply)

No pricing is involved yet because there's no AMM.

Future Implementation (Weighted Blend)

Once AMM pricing exists, the metric will become a weighted blend:

GemWeight = rolling_average[(W1 × gem_supply) + (W2 × gem_market_cap)]

Where:

gem_supply = ERC1155 totalSupply (current metric)
gem_market_cap = AMM price × supply
W1, W2 = governance-adjustable weights

Why the weighted approach? This limits price manipulation attack vectors. If only price × supply were used, an attacker could pump the AMM price temporarily to capture disproportionate emissions, then dump. By blending in raw supply, you dilute the impact of short-term price manipulation.

Example:

Total siphoned: 5,000 BPL/day
GemA: 60% of total weight
GemA receives: 5,000 × 0.60 = 3,000 BPL

Step 2: Role Split

Within each Gem/AI, the allocation is split between three roles:

Role

Default %

Description

Creator

40%

The original creator of the AI

dApp

20%

The application hosting the AI

Contributors

40%

Everyone who contributed (via PoC)

These percentages are governance-adjustable by BPL stakers.

Example (GemA with 3,000 BPL):

Creator: 3,000 × 0.40 = 1,200 BPL
dApp: 3,000 × 0.20 = 600 BPL
Contributors: 3,000 × 0.40 = 1,200 BPL

Step 3: PoC Split (Cores)

The contributor pool is distributed based on each person's Cores — tokens that represent documented contributions.

ContributorReward = ContributorPool × (YourCores / TotalCoresForGem)

Example (1,200 BPL contributor pool):

@user1 has 500 Cores (50% of 1000 total) → 600 BPL
@user2 has 300 Cores (30% of 1000 total) → 360 BPL
@user3 has 200 Cores (20% of 1000 total) → 240 BPL

The Complete Formula

For a contributor to a specific Gem/AI:

ContributorReward = DailyMintedBPL
                    × SiphonPercent           (default: 50%)
                    × (GemMarketCap / TotalMarketCap)
                    × ContributorSplit        (default: 40%)
                    × (YourCores / TotalCoresForGem)

Worked Example:

Given:

Daily minted: 10,000 BPL
Siphon: 50%
GemA: 60% of total market cap
@user1: 50% of Cores for GemA

@user1 reward = 10,000 × 0.50 × 0.60 × 0.40 × 0.50
              = 10,000 × 0.06
              = 600 BPL/day

Common Questions

Q: Does market cap multiply my PoC percentage?

No. Market cap determines how much goes to your Gem first. Then your PoC determines your share of that Gem's contributor pool.

They are sequential steps, not a direct multiplication of percentages.

Q: What if I contribute to multiple Gems?

You receive rewards from each Gem separately based on your Core holdings in each.

Q: How is the rolling average calculated?

The x/brahma module maintains a window of observations (configurable size). Currently, each observation is the ERC1155 gem's totalSupply. The average of this window determines the Gem's weight.

Once AMM pricing exists, observations will become a weighted blend of supply and market cap (see Step 1 above).

Q: Are these parameters fixed?

No. All parameters are governance-adjustable by BPL stakers:

Siphon percentage (default 50%)
Creator/dApp/Contributor splits (default 40/20/40)
Rolling average window size
Contribution type weights

Summary Table

Parameter

Default

Governance Adjustable

Siphon %

50%

Yes

Creator Split

40%

Yes

dApp Split

20%

Yes

Contributor Split

40%

Yes

Market Cap Window

Configurable

Yes

W1 (supply weight)

TBD

Yes (future)

W2 (market cap weight)

TBD

Yes (future)

x/brahma Emission Rewards - Technical implementation details
x/brahma AI Explanation - AI-friendly overview
Proof of Contribution - How Cores are issued

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Last updated 1 month ago

hashtagThe Big Picture

hashtagThe Flow (Diagram)

hashtagThe Three Steps Explained

hashtagStep 1: Market Cap Split

hashtagCurrent Implementation (Supply-Based)

hashtagFuture Implementation (Weighted Blend)

hashtagStep 2: Role Split

hashtagStep 3: PoC Split (Cores)

hashtagThe Complete Formula

hashtagCommon Questions

hashtagQ: Does market cap multiply my PoC percentage?

hashtagQ: What if I contribute to multiple Gems?

hashtagQ: How is the rolling average calculated?

hashtagQ: Are these parameters fixed?

hashtagSummary Table

hashtagRelated Documentation