There has been a few questions lately asking why users were getting 7% of their total Onions rewarded during the DeepOnion airdrop in the first week, and a lower amount in the second and subsequent weeks.
There are two main contributing factors, and this article will help you understand what is happening, and what you can do to boost your percentage.
First of all, is the most obvious. Each week more and more users are joining the airdrop, as more people join, the amount of payees increase, therefore diluting the "pot".
Here is a simplified example:
Week 1:
There are 100 users in the airdrop, each user has 1000 Onions and the Airdrop is 100,000 Onions.
That means to calculate how many Onions each user should be, we find out how many Onions in total are owned collectively by the participating users.
(Users (100) * user Onions (1000) = 100,000 Onions)
Now normally each user would have a different amount of Onions in their wallet, but in this example each user has 1000 Onions.
Now we need to divide the total amount of Onions by the number of Onions available in the airdrop.
(Total combined user Onions (100,000) / Airdrop Onion pot (100,000) = 1 Onion.
That means each user would get 1 Onion during the airdrop for every One they hold in their wallet (100%).
...
Week 2:
Now let's say in week two, there are now 20 more participants in the airdrop, making the total 120, and each user has 1000 Onions, the pot is again 100,000 Onions.
First we calculate the total amount of Onions held by users participating in the airdrop:
(Users (120) * user Onions (1000) = 120,000 Onions
Now to calculate how many Onions each user would receive:
(Airdrop Onion pot (100,000) / Total combined user Onions (120,000) = 0.8333333333333333 Onion.
This means each user would get 0.8333333333333333 Onions for every one they hold in their wallet (83.333333333%)
Now you can see the amount each user gets has decreased nearly 17%, this is the first reason why the percentage has been decreasing.
Now for the second, and lesser known reason: Bonuses
What many people don't know is you receive a higher percentage on balances above 10,000 Onions, and as more people reach a balance of above 10,000 Onions, they push down the average percentage of the airdrop!
Here is some details:
Each users wallet has a weight in the airdrop based on the amount of Onions in their wallet. In the above examples, each user has 1,000 Onions and therefore their weight was 1,000. But any Onions between 10,001 and 30,000 are weighted at a 1.2x multiplier.
That means a user with 20,000 Onions will instead of having a weight of 20,000 will have a weight of 22,000.
This is calculated like this:
0-10,000 Onions are 1.0x multiplier = 10,000.
10,001 - 20,000 Onions are 1.2x multiplier = 12,000
Add the two amounts together (10,000 + 12,000 = 22,000)
To show how this affects the total amount received, I will redo my first example, but this time with 1 user with a 25,000 Onion wallet balance.
(Users (99) * user Onions (1000) = 99,000 Weight)
(Users (1) * user Onions (10000) * 1 = 10,000 Weight (1x Multiplier Onions)
(Users (1) * user Onions (15000) * 1.2 = 18,000 Weight (1.2x Multiplier Onions)
Add it all together to get total weight (99,000 + 10,000 + 18,000 = 127,000)
Now to find out how many Onions each person gets, we divide the pot (100,000 Onions) by the weight.
100,000 / 127,000 = 0.7874015748031496 Onions per 1 weight.
That means that each person with 1,000 Onions would receive a total of 787.4015748031496 Onions (78.74015748031496%).
The user with 25,000 Onions who weight was 28,000, would receive 22047.24409448819 Onions (88.18897637795276%).
If you are struggling to understand the weight, I have done another analogy at the bottom of the page "Apples", hopefully this is easier to understand.
As you can see the user who held 25,000 Onions received nearly 10% more Onions per each Onion they held in their wallet. If they did not have the bonus multiplier, they would have only received 19685.03937007874 Onions, that is 2362.20472440945 Onions less.
Now if we did the calculation again, this time with 2 of the users receiving a bonus multiplier, it would again drop the percentage received by those who only receive the standard 1.0x Multiplier.
So as more and more people breach the 10,000 mark, they push down the average percentage received, but they are actually earning a larger percentage than they did the previous week.
Struggling to understand the weight?
Lets instead talk about Apples. The airdrop is payment you receive as a reward for holding apples, you are paid by the total weight of your apples. All your apples weigh 1kg, therefore if you have 1,000 apples, you have 1,000kg of apples.
The guy who is rewarding you only has $100,000 and that has to be shared with everyone who holds apples and is participating.
But there is another person who has apples, some of his apples are heavier than yours, this means he gets paid more for some of his apples. 10,000 of his apples weigh 1kg like yours, but he has another 15,000 which weigh. 1.2kg. This means the total weight of all his apples is 28,000kg instead of 25,000kg which they would be if they are weighed the same as yours.
DeepOnion (Todd)