Profit Sharing Model
At Polyquest, our profit-sharing model is designed to maximize value for all stakeholders, including users, quest creators, and the platform itself. Below is a breakdown of how profits are shared, with simple mathematical equations to illustrate the calculations based on a "winner takes all" approach.
1. Platform Fee (2% of Total Transaction Volume)
Polyquest charges a platform fee of 2% on the total value of each successful prediction quest. This fee is used to cover operational costs, platform maintenance, and future development.
Equation:
Example:
2. Creator Fee
Quest creators have the flexibility to set their own fees, which are also deducted from the total pool. This fee incentivizes creators to develop engaging content.
Equation:
Example: If a creator sets a fee of 1% on a $10,000 pool:
3. User Payout Pool (Winner Takes All)
After deducting the platform fee and creator fee, the remaining amount is allocated to the User Payout Pool, which is distributed to the winning participants. In our "winner takes all" model, the entire User Payout Pool goes to the single winner or winners if there is a tie.
Equation:
Example: Using the above examples, the user payout pool would be:
The payout for each winning user is calculated based on their contribution to the total votes for the correct answer:
Equation for User Reward:
Example: If a user contributed $500 in votes to the correct answer, and the total votes on the correct answer are $5,000:
Additional Revenue Streams: Expanding Beyond Market Contract Fees
Polyquest’s platform is designed to generate multiple revenue streams beyond the core market contract fee, enhancing sustainability and growth:
Pay-to-Survey Feature:
Users can create surveys and deposit rewards in advance to gather information from others. A 2% fee is charged from the total reward pool, along with an instant creation fee.
Example: For a $1,000 reward pool, the fee would be:
APY-to-Prediction Conversion:
This feature allows users to convert future yield from DeFi protocols into prediction tokens, enabling participation in prediction markets without risking their principal. We charge a conversion fee for this service, adding another revenue stream.
Scalability: By tapping into the restaking market and attracting users who want to maximize their DeFi returns through diversified strategies, Polyquest can expand its market share and increase engagement. Users feel more confident in their predictions since only future income is at stake, not their collateral.
Market Contract API:
The API allows third-party projects, KoLs, and communities to create and manage their prediction quests on their platforms, with Polyquest taking a small transaction fee from each successful quest.
Impact on Growth: This feature significantly enhances scalability by enabling seamless integration with external platforms and communities, driving greater adoption and use of the Polyquest ecosystem.
A Strong Case for Investment
For investors, our model presents a compelling opportunity:
High Growth Potential: With a vast and expanding market and innovative features like APY-to-Prediction Conversion and Market Contract API, Polyquest is well-positioned for substantial growth.
Multiple Revenue Streams: Beyond the core market contract fee, our platform generates income through custom token integrations, pay-to-survey fees, conversion fees from APY-to-Prediction, and additional features like membership and pay-to-create options. This diverse revenue model ensures financial stability and long-term profitability.
Community-Driven Scalability: Our platform fosters inclusivity and broad participation across various communities, driving sustained engagement and growth.
By maintaining a sustainable fee model and continuously innovating to add value for all stakeholders, Polyquest is set to redefine the prediction market landscape and become a leader in the Web3.5 DeFi community space.
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