# πRewards and Distribution

## Inverse Score-based Reward System

At Cracers, we pride ourselves on providing a unique and fair reward system that offers exciting opportunities for all participants, regardless of their level of expertise in forecasting. Our innovative inverted score-based reward system ensures that rewards are distributed based on the accuracy of each participant's forecast, allowing those with the closest predictions to earn the highest rewards.

## How it Works

In each race, participants forecast the future price of a specific publicly traded asset for a predetermined date and time. They earn points based on their forecasting accuracy - the closer the forecast is to the real price, the lower the score.

The key aspect of our system is that lower scores are better. Think of it like golf - the fewer strokes (or in our case, points) you have, the better you've performed.

## Entry Fee Distribution

When participants register for a race, they pay an entry fee. This fee is distributed in the following manner:

**a.** 5% goes to the winner of the event (the participant with the best score).
**b. **5% goes to the Cracers community
**c.** x% goes to other set royalties (this value varies depending on the type of race)
**d. **The remaining fees form the reward pool, which is distributed among the participants based on the Inverse Score-based Reward system.

## Reward Calculation

To calculate the reward for each participant from the remaining pool (after distribution as per points a, b, and c), we follow these steps:

Calculate the inverse of each participant's score.

Sum up all the inverse scores of the participants.

Divide each participant's inverse score by the total sum of inverse scores.

Multiply each participant's proportion (from step 3) by the total reward pool.

Here's an example considering $50 of rewards for distribution and random scores:

Participant | Score | Inverse Score | Proportion of Total Inverse Scores | Reward |
---|---|---|---|---|

A | 20 | (1/20)=0.05 | (0.05/0.125) = 0.4 | (0.4x50)= $20 |

B | 25 | 0.04 | 0.32 | $16 |

C | 50 | 0.02 | 0.16 | $8 |

D | 100 | 0.01 | 0.08 | $4 |

E | 200 | 0.005 | 0.04 | $2 |

Total | - | 0.125 | 1.00 | $50 |

As seen in the table, Participant A who has the lowest score (closest forecast) receives the highest reward, while Participant E with the highest score (furthest forecast) gets the smallest reward.

This system ensures a fair and attractive reward distribution among participants, focusing on the accuracy of their forecasts.

On top of the reward, the best score, in this example Participant A, also receives 5% of all of the pooled entry fees.

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