Markup protocol

The markup protocol procedure is aimed at defining the rarity of the Loyalty Badges by their additional appraisal by the community. The procedure takes place on Epoch basis. The whole markup fund (20% of Backing pool inflows) is to be distributed each Epoch.

Markup pricing procedure takes place in the following phases:

• Epoch N-1: Collecting submissions by the Loyalty Badges owners to apply the particular Loyalty Badges for the procedure. There is an additional requirement (which will be defined by the community closer to the procedure launch) to get access for the submission

• Epoch N: voting by community to allocate funds of the markup fund (as of the end of Epoch N-1 state) between the submitted Loyalty Badges. Each community member has the equivalent number of votes to his Loyalty points which can be allocated to several NFTs

• Epoch N+1: the protocol makes the bid offers on the internal marketplace which consolidate the base level pricing and the markup one. The markup value is calculated as a relative number of votings numbered the markup fund (as of the end of Epoch N-1 state). The bids are valid only for one Epoch and to be canceled the next one if not accepted

• Epoch N+2: not accepted bids are canceled, the allocated markup funds are returned back to the markup fund and the next Epoch bids are calculated and placed

Community memeber incentive to participate in the procedure is to get voting rewards from the dedicated fund.

Markup pricing procedure is applicable to all Loyalty Badges which have not been in the Repository after accepting the protocol bids.