tl;tr: Healthy activity from wide a range of accounts creates the best reward outcome. Bots, if used properly can contribute and benefit from this.

Every 216,000 slots a new win map is produced. This is a VRF map of the next 216,000 win hashes on each corresponding future slot. 

The win map is extended with a weight on each slot that factors a programmable luck score, filtering out wins that have low (below 4) luck score.


When multiple swaps occur on the same winning slot, all qualifying winners (luck filtered) receive rewards.

Rewards are designed to promote productive activity. Combating 

 on reward pools to favor productive activity is a difficult challenge to solve for. We approach solving this using a conditional ruleset which defines the qualifying parameters adjusted by market based governance largely scoped on Futarchy (

https://mason.gmu.edu/~rhanson/futarchy.html

). Abstracting manual voting is cumbersome - instead utilization gauges throttle the reward parameters across time weighted activity (bot-resistant). These weights include:

Base reward multiplier - multiplier of calculated reward (max 10x). This value increases with more diverse accounts producing positive momentum (buy activity) and volume. 
 

Volume qualification - threshold of qualifying volume of each winning transaction which is eligible to receive a reward. One can indeed have a winning hash and not receive reward because of luck or volume of winning transaction.
 

Momentum weighting - time weighted (bot-resistant) upward momentum (buying behavior) positively affects other gauges. Downtrend momentum negatively impacts rewards by raising volume qualifications. 


Reward pool funding rate - while the funding rate of reward pool is largely based on transaction volume, activity from liquidity mining has a strong impact on reward pool growth. 

The winning, qualified activity is queued in via the 

. The reward routers consideration of market sell-offs order-match users to dollar value rather than token amounts.

Luck is a score that is calculated from the reward merkle. Luck adjusts at the account level based on activity. Luck runs 3,000,000 slots back giving it self healing for luck-exhausted accounts. This activity includes:

Tips & Account transfers (Hash boosting, Liquidity Mining)

Bots are good if the bots are producing new positive activity. Positive activity is rewarded. 

Swap Harder

The Smart Reward Router is a novel approach that optimizes reward distribution value routes by finding the most efficient paths across liquidity pools for rewards based on dollar value.


Uses data from registered keepers (Jupiter, Uniswap, Radium, CoinGecko, and Dextools) to track and index time-weighted average prices in a oracle


Analyzes available liquidity in various POL (protocol owned liquidity) pools


Factors in slippage, price impact, and network fees to determine optimal routes


Automates pool liquidation when necessary (swapping tokens into the primary reward tokens liquidity)


Long-Live execution - retries quotes in USDC value rather than token amount to adjust for volatility of net token value.

The router continues to evolve with use and protocol versioning.

The Price Oracle component of the router updates base rates from keepers every 800ms from various providers.

A key aspect is how the router handles reward execution - if a user earns a $12 reward, the router will either find the most liquid route against the reward pool or queue the transaction for a reattempt rather than executing a high-slippage transaction that would deliver significantly less value to the user.

Reward Router

While Vitalk doesn't necessarily directly impact the financialization of Ethereum, he does impact and inspire the product teams and engineering contributing talent of Ethereum. 

Engineers are inspired by Vitalk's conspicuous appearance, expertise, thoughtfulness, credibly neutral concepts and unique thought processes.

The inevitable use cases that are more centered around sovereignty, identity, data, preference and mobility will dominate in the end. I feel however, this would happen elsewhere if Vitalk exiting his post.

We should never forget that we aren't recording money on chain. We're recording attestations of truth. And the honest truth is:

Vitalk is not important to the price , but he is important to the developer culture  which fosters the validity of it all -- the why -- and that is 📠

h wonder

MEGA

Swap Harder

Reward Router