Long Term Incentives for Loyal Investors 🐶

3 min readOct 13, 2020

Loyal.Finance’s innovative loyalty reward system rewards investors who believe in the project.

Throughout the last months, the DeFi projects made themselves known to pretty much everybody in the crypto space. Many traders and investors are reminded of the ICO hype at the end of 2017, where thousands of crypto currencies popped up, to disappear shortly afterward again. The current DeFi hype has similar patterns. Thousand of Liquidity Farming / Staking projects appear, get pumped before staking goes live, and slowly bleed out in because whales who invested huge amounts take profit as soon as possible. What is missing is a long term incentive for investors to hold the staking token.

Incentivizing long term investors to participate in the loyal.finance ecosystem

That’s where loyal.finance comes into play. Since many people fell victim to the short-paced mechanisms, the loyal.finance team is operationalizing this momentum. We are using our innovative token reward model to reward users who participate in the loyal.finance ecosystem long term while fighting the typical hyperinflation pattern of most current yield farming projects.

Here is how it works:

Every day there will be a snapshot that determines the current balance of every $LYL holder. There will be several airdrops — every two weeks — that distribute the “Reward Loyalty Token” ($rLYL) to the account holders, which hold at least 50 $LYL. The longer you hold the token, the more rewards you receive commutatively. In addition to Staking, the $rLYL token will be used as the DAO governance token, delegating the future governance of the loyal.finance ecosystem into the hands of its most loyal supporters.

Similarly to $LYL, $rLYL will qualify its holders to participate in staking on the upcoming loyal.finance staking-platform. As soon as the staking-platform goes live, two separate Stakingpools will share the total monthly Staking Reward of 8100 $LYL equally. As a result of the scarce characteristics and high entry threshold of $rLYL, only a few qualified holders can participate in $rLYL Staking. Therefore the overall Staking-Reward within the $rLYL-Pool will be much higher than in the $LYL pool. It needs to be mentioned here though that you’ll need to hold the corresponding amount of $LYL for $rLYL-staking to avoid dumps, utilize and enable price-stability for $LYL.