Rewards Algorithm

The Retro-Zone Rewards Allocation Algorithm (RZRAA) was designed to provide sustainability and stability to the arcade economy. Tokens are unlocked from the community treasury according to a specific vesting schedule; however, the actual rate at which they are allocated as P2E rewards to the community is determined by the RZRAA.

Based on algorithmic interpretations of macro-data, the RZRAA can anticipate significant token price volatility and correspondingly adjust the rate of rewards in real time, in the interest of protecting community assets. It does so by adjusting the rate of P2E rewards being offered to the community at any given moment, including P2E, B2E, staking and NFT rewards. This enables the RZ-Arcade to offer free-flowing rewards during the Bear, with enough token supply to withstand the harshest of winters.

RZRAA Example:

- Let's say you are playing in the arcade and $RZ starts GIGA-mooning, your character can only earn minimum rewards during this time and the chances of finding an item are very slim. On the flip side, let's imagine the $RZ chart starts to nuke, now is your chance to receive substantial rewards in the form of RZT Tokens and rare-NFTs in the all arcade games! The RZRAA works as a duel-function, creating an opportunity of arbitrage to stimulate ecosystem growth by attracting new buyers, and decreasing token price volatility by indirectly mimicking the function of the token’s own market maker. This technology has the potential to save the ecosystem 10's, 100's, even 1000's of Ethereum.

Token Protection Mechanism:

- The Token Protection Mechanism (TPM) is a term we use to describe the volatility-reflex function coded into the RZRAA. When stripped down to its bones, our TPM could potentially save meme-coin Industry Billions of dollars every year, defending against chart manipulation, volatility and swing traders.

- The RZRAA tracks data such as system-wide monetary flow, general ecosystem engagement, and user habits including their level of engagement and rate of task completion over time. The contract produces an automated response to real time data in the interest of protecting community assets, while ensuring the protection of all user’s anonymity rights.

- Using smart-contract technology the RZRAA is also able to verify the completion of in-game tasks in real time (e.g. completed level), facilitating the automation of rewards allocation, distribution and rate, based on the anticipated short-term economic stability of RZ Token.