Incentive Mechanisms

Learn how you can earn CGDX tokens by contributing to the CognideX ecosystem.

Actors

Participants in CognideX are divided into three main categories:

Data Providers

Users who contribute dat, mainly these 2:

• Data Pool Contributors:

  • Contributes data to the data pools of CognideX
  • Contribute data to a data provider's request

• Dataset Providers:

  • Provides a full dataset and get listed it on CognideX

Data Consumers

Users who buys data from CognideX in 4 different forms:

• Data Pools:

  • Purchase of CognideX's community data pool

• Data Pool Analytics:

  • Purchasing of analytical reports of a data pool made me the Data Analysts

• Listed Datasets:

  • The basic purchase of a dataset listed by a Data Provider

• Request of crowd sourcing of data from the community:

  • Buys in a certain amount of CGDX and decides on the token distribution based on how much data is needed from the community
  • Data in the data pool will be owned by the Data Consumer

Data Analysts

Users which contribute to each data pool by providing analytical insights of the data pool when there is a demand

Incentives

CGDX tokens distributed to the actors when certain actions are performed in CognideX

Data Pools

Initial Upload Incentive:

Every data pool will have an initial upload incentive for the Data Provider to upload data and receive CGDX.- Reward Calculation

Staking Against Data Pool:

To encourage token vesting, users can stake the tokens they earned from the Initial Upload Incentive against the data pool to earn CGDX everytime the data gets sold - Reward Calculation

Updating Data Pool:

The data pool will keep its data up to date by incentivizing Data Providers to continuously upload newer versions of their data to receive CGDX rewards - Reward Calculation

Governance of each Data Pool - Read More in Governance:

For Data Providers who stake their tokens in Staking Against Data Pool, they are able to participate in activities of the data pool, with the goal to ultimately make more revenue out of the data pool:

• Listing Data Pool on other Data Marketplaces
  • Data Providers can list their data pools on other data marketplaces and earn CGDX rewards
• Choose Data Analyst to provide insights
• Merge Data Pool with other Data Pools

Rewards

This section details the rewards that can be earned by the actors in CognideX

Initial Upload Incentive Rewards

The rewards for the initial upload of data to a data pool are calculated based on the following factors:

• CGDX Allocation: The amount of CGDX allocated to the data pool
• Max number of uploads: The maximum number of uploads allowed for the data pool
• Max Incentive per User: The maximum reward per user for the initial upload
• Data Quality Score: The quality of the data uploaded
• Early Adopter Bonus: A bonus for early adopters who upload data to the data pool - this will be provided by the DAO

Reward Calculation for Initial Upload Incentive:

The reward for the initial upload of data to a data pool is calculated using the following formula:

$$\text{Max Incentives per User} = \frac{\text{CGDX Allocation}}{\text{Max number of uploads}}$$ $$\text{Reward} = \text{Max Incentives per User} \times \text{Data Quality Score} + \text{Early Adopter Bonus}$$

Where:

• $\text{Reward}$ - the incentive reward in CGDX for the initial upload.
• $\text{CGDX Allocation}$ - the total amount of CGDX allocated to the data pool.
• $\text{Max number of uploads}$ - the maximum number of uploads allowed for the data pool.
• $\text{Data Quality Score}$ - a value between 0 and 1 that represents the quality of the data uploaded.

Summary: This formula ensures that the rewards are proportional to the CGDX allocation, data quality, and early adoption of the data pool. It incentivizes users to upload high-quality data early to maximize their rewards.

Click for Full Formula Explanation

Staking Against Data Pool Rewards

The rewards for staking tokens against a data pool are calculated based on the following factors:

• Staking Amount: The amount of tokens staked
• Data Pool Sales: The number of times the data pool has been sold
• Data Pool Revenue: The total revenue generated by the data pool
• Total Staked Amount: The total amount of tokens staked by all users
• Total Staking Period: The total duration of staking by all users

Reward Calculation for Staking Against Data Pool:

The reward for staking tokens against a data pool is calculated using the following formula:

$$\text{Performance Bonus} = \min(1, 0.8 + 0.01 \times \text{Data Pool Sales})$$ $$\text{Reward} = \left( \frac{\text{Staking Amount}}{\text{Total Staked Amount}} \right) \times \text{Data Pool Revenue} \times \text{Performance Bonus}$$

Where:

• $\text{Reward}$ - the incentive reward in CGDX for staking tokens against the data pool.
• $\text{Staking Amount}$ - the amount of tokens staked by the user.
• $\text{Data Pool Revenue}$ - the total revenue generated by the data pool.
• $\text{Total Staked Amount}$ - the total amount of tokens staked by all users.
• $\text{Total Staking Period}$ - the total duration of staking by all users, in days.
• $\text{Data Pool Sales}$ - the number of times the data pool has been sold, which adds a bonus to the reward based on sales performance.
• $\text{Performance Bonus}$ - a multiplier starting at 0.8 and increasing by 0.01 per sale, capping at 1.

Summary: This formula ensures that the rewards are proportional to the amount of tokens staking, and it includes a performance bonus based on the number of data pool sales. It incentivizes users to stake more tokens and aligns their interests with the success of the data pool.

Note: Each user can only stake the tokens they earned from the Initial Upload Incentive against the data pool and the only chance they get to decide to do that is during the initial upload

Click for Full Formula Explanation

Updating Data Pool Rewards

The rewards for updating data pools are calculated based on the following factors:

• Number of Updates: Data Providers who contribute to the data pool and have staked their tokens against the data pool
• Data Quality Score: The quality of the updated data
• CGDX Allocation: The amount of CGDX allocated for updating data pools
• Inconsistency Penalty: A penalty for inconsistent or low-quality updates
• Slashing: A penalty for providing data that is not authentic or has a score below a certain threshold(Set by the DAO) - This will be deducted from the staked tokens (Read More in Governance)

Reward Calculation for Updating Data Pool:

The reward for updating data pools is calculated using the following formula:

$$\text{Reward} = \left( \frac{\text{CGDX Allocation}}{\text{Number of Updates}} \right) \times \text{Data Quality Score} \times (1 - \text{Inconsistency Penalty})$$

Where:

• $\text{Reward}$ - the incentive reward in CGDX for updating the data pool.
• $\text{CGDX Allocation}$ - the total amount of CGDX allocated for updating data pools.
• $\text{Number of Updates}$ - the total number of updates contributed by data providers.
• $\text{Data Quality Score}$ - a value between 0 and 1 that represents the quality of the updated data.
• $\text{Inconsistency Penalty}$ - a value between 0 and 1 that represents the penalty for inconsistent or low-quality updates. A higher penalty reduces the reward.

Slashing:

If the data provided is not authentic or has a score below a certain threshold, the staked tokens will be slashed. The slashing amount is:

$$\text{Slashing Amount} = \text{Staked Amount} \times \text{Slashing Percentage}$$

Where:

• $\text{Staked Amount}$ - the amount of tokens staked by the user.
• $\text{Slashing Percentage}$ - the percentage of the staked amount that will be slashed for providing low-quality or inconsistent updates.
• $\text{Slashing Amount}$ - the amount of tokens that will be slashed from the staked amount.

Note: Slashing will be deducted from the staked tokens and credited to the DAO treasury.

Summary: This formula ensures that the rewards are proportional to the quality of the updates and includes a penalty for inconsistent or low-quality contributions. It incentivizes Data Providers to maintain the integrity of the data pool by providing high-quality updates.

Click for Full Formula Explanation

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Explanation of Formulae

Explanation of the Formula for Initial Upload Incentive Rewards:

1. Base Reward Calculation: $\left( \frac{\text{CGDX Allocation}}{\text{Max number of uploads}} \right) \times \text{Data Quality Score}$

   • CGDX Allocation: This is the total amount of CGDX tokens allocated for rewards in the data pool.

   • Max number of uploads: This is the maximum number of data uploads that the pool can accommodate. Dividing the CGDX allocation by the maximum number of uploads gives the base reward per upload.

   • Data Quality Score: This score, ranging from 0 to 1, represents the quality of the data uploaded. Multiplying the base reward per upload by the data quality score ensures that higher quality data receives a proportionally higher reward. For example, if the data quality score is 0.8, the reward will be 80% of the base reward.

2. Early Adopter Bonus: $+ \text{Early Adopter Bonus}$

   • Early Adopter Bonus: This is an additional reward given to early adopters who upload their data to the pool. This bonus is added on top of the base reward calculated above, providing an extra incentive for users who contribute early to the data pool.

Example Calculation:

Suppose the following values:

• CGDX Allocation: 1000000 CGDX
• Max number of uploads: 10000
• Data Quality Score: 0.9
• Early Adopter Bonus: 100 CGDX

The reward calculation would be: $\text{Reward} = \left( \frac{1000000 \text{ CGDX}}{10000} \right) \times 0.9 + 100 \text{ CGDX}$ $\text{Reward} = 100 \text{ CGDX} \times 0.9 + 100 \text{ CGDX}$ $\text{Reward} = 90 \text{ CGDX} + 100 \text{ CGDX}$ $\text{Reward} = 190 \text{ CGDX}$

This formula ensures that rewards are proportional to the quality of the data uploaded and includes a special incentive for early contributors to encourage initial participation in the data pool.

Explanation of the Formula for Staking Against Data Pool Rewards:

1. Base Reward Calculation: $\left( \frac{\text{Staking Amount} \times \text{Staking Period}}{\text{Total Staked Amount} \times \text{Total Staking Period}} \right)$

   • Staking Amount $\times$ Staking Period: This product ensures that both the amount of tokens staked and the duration for which they are staked are taken into account. A user staking more tokens for a longer period will have a higher stake in the pool.

   • Total Staked Amount $\times$ Total Staking Period: This product normalizes the reward based on the total contributions of all users. It ensures that the rewards are distributed fairly among all stakers, proportional to their contributions.

2. Performance Bonus Calculation: $\text{Performance Bonus} = \min(1, 0.8 + 0.01 \times \text{Data Pool Sales})$

   • Data Pool Sales: The number of times the data pool has been sold acts as a factor to adjust the base reward. This introduces a performance-based bonus, rewarding users additionally based on the commercial success of the data pool.

   • Performance Bonus: This term starts at 0.8 and increases by 0.01 for each sale, capping at 1. This ensures that the bonus is significant enough to incentivize sales without overwhelming the base reward.

3. Final Reward Calculation: $\text{Reward} = \text{Base Reward} \times \text{Data Pool Revenue} \times \text{Performance Bonus}$

   • Data Pool Revenue: This factor ensures that the rewards are tied to the success of the data pool. The more revenue the data pool generates, the higher the potential rewards.

   • Performance Bonus: The adjusted multiplier based on sales performance adds an additional incentive for the commercial success of the data pool.

This formula is designed to balance the rewards fairly based on individual contributions (amount and period of staking) and the overall success of the data pool (revenue and sales performance). It incentivizes users to stake more and for longer periods while also aligning their interests with the success of the data pool.

Example Calculation:

Let's assume the following values for the example:

• Staking Amount: 100 CGDX
• Staking Period: 30 days
• Total Staked Amount: 1000 CGDX
• Total Staking Period: 300 days (sum of all staking periods from all users)
• Data Pool Revenue: 500 CGDX
• Data Pool Sales: 15

Step 1: Base Reward Calculation

$\text{Base Reward} = \left( \frac{\text{Staking Amount} \times \text{Staking Period}}{\text{Total Staked Amount} \times \text{Total Staking Period}} \right)$

$\text{Base Reward} = \left( \frac{100 \text{ CGDX} \times 30 \text{ days}}{1000 \text{ CGDX} \times 300 \text{ days}} \right)$

$\text{Base Reward} = \left( \frac{3000}{300000} \right)$

$\text{Base Reward} = 0.01$

Step 2: Performance Bonus Calculation

$\text{Performance Bonus} = \min(1, 0.8 + 0.01 \times \text{Data Pool Sales})$

$\text{Performance Bonus} = \min(1, 0.8 + 0.01 \times 15)$

$\text{Performance Bonus} = \min(1, 0.8 + 0.15)$

$\text{Performance Bonus} = \min(1, 0.95)$

$\text{Performance Bonus} = 0.95$

Step 3: Final Reward Calculation

$\text{Reward} = \text{Base Reward} \times \text{Data Pool Revenue} \times \text{Performance Bonus}$

$\text{Reward} = 0.01 \times 500 \text{ CGDX} \times 0.95$

$\text{Reward} = 0.01 \times 475 \text{ CGDX}$

$\text{Reward} = 4.75 \text{ CGDX}$

Therefore, the reward for the user who staked 100 CGDX for 30 days in this example is 4.75 CGDX.

Explanation of the Formula for Updating Data Pools:

1. Base Reward Calculation: $\left( \frac{\text{Fund Allocation}}{\text{Number of Updates}} \right)$

   • Fund Allocation: This is the total amount of CGDX tokens allocated for rewards for updating data pools.

   • Number of Updates: This is the total number of updates contributed by data providers. Dividing the fund allocation by the number of updates gives the base reward per update.

2. Quality Adjustment: $\times \text{Data Quality Score}$

   • Data Quality Score: This score, ranging from 0 to 1, represents the quality of the updated data. Multiplying the base reward per update by the data quality score ensures that higher quality updates receive proportionally higher rewards.

3. Inconsistency Penalty: $\times (1 - \text{Inconsistency Penalty})$

   • Inconsistency Penalty: This is a penalty value between 0 and 1 for inconsistent or low-quality updates. A higher inconsistency penalty reduces the final reward, discouraging low-quality contributions. If the inconsistency penalty is 0, there is no reduction in the reward. If it is 1, the reward is completely forfeited.

Example Calculation:

Suppose the following values:

• CGDX Allocation: 500 CGDX
• Number of Updates: 50
• Data Quality Score: 0.85
• Inconsistency Penalty: 0.1

The reward calculation would be: $\text{Reward} = \left( \frac{500 \text{ CGDX}}{50} \right) \times 0.85 \times (1 - 0.1)$ $\text{Reward} = 10 \text{ CGDX} \times 0.85 \times 0.9$ $\text{Reward} = 10 \text{ CGDX} \times 0.765$ $\text{Reward} = 7.65 \text{ CGDX}$

This formula ensures that rewards are proportional to the quality of the updates and includes a penalty for inconsistent or low-quality contributions to maintain the integrity of the data pool.