Valkyrie allows for creators to specify campaigns that are in alignment with their targets and correspondingly distribute incentives to their participants. Once the initial campaign rewards are established, participants will receive a pre-specified amount of rewards every time they perform the campaign-chosen action.
Valkyrie protocol's reward structuring allows for campaign creators to expedite their marketing campaign progress. Rewards are distributed for wanted behavior, and additional rewards are accrued to participants who have additionally shared the content to other users, allowing for a continuous incentive structure for campaign participants. Additionally, the Booster Program further incentivizes campaign creation, content sharing, and targeted marketing. Valkyrie Protocol's rewardable system can be defined by the characteristics below.
- Blockchain-as-a-Service: the most accurate referral data, recorded immutably and transparently on the Terra blockchain
- Incentives-as-a-Service: more efficient capital outlay and campaign financing via dynamic tokenomics
- “Equity”-as-a-Service: ownership stake in referral ecosystem via VKR tokens
An 'action' is defined to be the target behavior that the campaign producer wants to be produced and is the action that will provide rewards defined by the reward structure of the campaign.
By finding and sharing interesting campaigns that match the participants' interests, he/she can receive additional rewards. The participant can share the campaign with other users, and if a referral is successful (ie. there is a conversion of another new user for the campaign), he/she will be eligible to additional rewards allocated for referrals.
A 'share' is an action taken by a campaign participant to advertise or share the campaign link/content to other users. Rewards for sharing are decided by the campaign creator when first creating a campaign. Valkyrie is a protocol that allows users to earn rewards through both 'participation' and 'shares'. Valkyrie has built a “connectable reward structure”, whereby users can share a unique referral link that is generated once they participate in a chosen campaign.
Once generated, these links can be shared among their community and if their referrals also participate in the campaign, the user is rewarded again for the successful referral. This cascading referral reward structure incentivizes users to become actively involved in participating and promoting a campaign, and allows participants to potentially see much greater rewards than compared to a traditional referral program.
* Connectable(Cascading) Reward Structure
A reward structure whereby all participants are able to receive rewards through content sharing and propagation is the main attraction of the Valkyrie Protocol for both campaign creators and participants alike.
Campaign participants are not only entitled to rewards accrued to them through direct campaign participation but also any participation by other users if it can be linked to the original sharer in a tree structure. The reward distribution schema for each campaign can differ and is set by the campaign creator.
For example, a campaign with a participation reward scheme 100 token, and a referral reward scheme VKR [50,30] will result in the reward structure described below,
Analyzing Participant A's total rewards,
- Participant A receives 100 token reward for his/her direct participation.
- Through Participant A's link, he/she has also shared the campaign to Participants B, C, and D, who all have participated in the campaign. Then Participant A is eligible for an additional 50 VKR arising from direct participation for each of his referees.
- If Participants E, F, G participate through either Participant B, C, or D's referral link, then Participant A will be eligible for another 30 VKR for each.
- Thus the total rewards received by Participant A is 100 token and 240 VKR.
- Note that this cascading scheme is currently restricted to only three layers, so any participation by users further down in the tree will not be considered when calculating Participant A's rewards.
Calculating from Participant B's viewpoint,
- 100 token reward for his/her direct participation.
- Through Participant A's link, he/she has also shared the campaign to Participants E and F, who all have participated in the campaign. Then Participant B is eligible for an additional 50 VKR arising from direct participation for each of his referees.
- If Participant H participates through either Participant F's referral link, then Participant B will be eligible for another 30 VKR.
- Thus the total rewards received by Participant B is 100 token and 130 VKR.
As seen in the example above, Valkyrie Protocol's design of a connectable reward structure delivers exponentially expanding rewards for campaign participants and corresponding campaign awareness for the creator.
A user may be required to deposit a participation deposit or Valkyrie Passes (more details below) in order to be eligible for participation. Participation deposits are set by campaign creators to reduce abuse on campaigns i.e. multiple wallets to take advantage of referral rewards for example.
Participation deposits are minimum VKR required for participation eligibility; whereas Valkyrian Passes are entry tickets to certain campaigns. When participating in a campaign with participation deposit requirements, the user will be required to set aside VKR from their wallet which will be released in full after participation (after a set lock up period)
Valkyrie protocol has Referral Reward Caps. In order to receive more referral rewards, the limit must be increased. Commonly the referral reward caps are based on the reward scheme set by campaign creators. In order to increase the limit, a user must stake VKR onto governance. The increase in limit will be proportional to the amount staked, i.e. 30%.
If the reward scheme is a campaign set to VKR [50,30], the base referral reward cap is (50+30)*2 = 160 VKR. In this state, if the user governance staking 1,000 VKR, the referral reward cap increases by 30%, 300 VKR. Therefore, the user will have a referral reward cap of 460 VKR.