> For the complete documentation index, see [llms.txt](https://vizo.gitbook.io/vizo-exchange-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vizo.gitbook.io/vizo-exchange-docs/documentation/basics/4.5-airdrop-and-market-making-incentive-system.md).

# 4.5 Airdrop & Market Making Incentive System

## 1. Airdrop System 

### 1.1 Token Claim 

* Users and Market Makers can convert their held token points into $VIZO, and withdraw them monthly
* Market Makers gain withdrawal qualification once every 30 days (qualification count cannot be accumulated and expires if unused)
* The withdrawal qualification uses a numerical value, in preparation for encouraging users to stake tokens to gain withdrawal counts in the future
* Note: If the unlocked amount is insufficient to cover the user's withdrawal, the user may hold the amount until the next month's withdrawal

<figure><img src="/files/Is0ekxsZkG9ltDIhWJxy" alt=""><figcaption></figcaption></figure>

### 1.2 Token Unlocking

34% of the tokens are allocated entirely as rewards for Market Makers and users. This portion of tokens unlocks linearly over 48 months, with approximately 7 million tokens unlocked each month.

***

## 2. Market Making Incentive System&#x20;

### 2.1 Goals and Principles&#x20;

* **Value Discovery**: The essence of market making is to continuously express opinions at tradable prices, promoting the formation of a credible Mid-Price and Order Book Curve
* **Expression Priority**: Orders that are closer to the mid-price, have a more tradable size, and are more continuous over time, represent a clearer view which receive a higher score
* **Fairness and Auditability**: Provide auditable logs that can be replayed

### 2.2 Qualification and Scoring Eligibility&#x20;

* **MM Permission Activation**: Enabled for newly registered users after their Cumulative Transaction Volume ≥ $100. (Once the condition is met, the user receives rewards every time an order meets the size requirements) .
* **Full Visibility**: All market-making orders are explicitly displayed and participate in scoring.
* **Effective Order Placement Range**: With tick=0.01 as the minimum quote step, the scoring band is mid ± 3×tick. Orders outside this band do not score.
* **Warm-up**: Order placement time only starts accumulating 120 seconds after the order enters the book.
* **Minimum Size**: min\_size\_reward ≥ 50 (The number of shares in a single order; this must support configuration for different markets).
* **Extreme Range**: No points are scored when mid ≤ 0.10 or ≥ 0.90 (This prevents single-sided tail-end occupation and must support configuration for different markets) .
* **MM Reward Multiplier**: The default is 1x, which is met when the transaction volume is greater than or equal to $100U. If the monthly transaction volume is greater than or equal to $500U, the MM reward multiplier is 2x (i.e., the entire month's reward token points are multiplied by 2). This resets at the beginning of the month.

### 2.3 Calculation Model&#x20;

#### 2.3.1 Weight Based on Distance to Mid-Price&#x20;

* Distance d=|price−mid|
* Bandwidth B=3×tick
* Closeness Weight: m(d)=max(0, 1−(d/B)^2) (mid=1, boundary = 0)
* Example: If the current mid = 0.65 and the user's order price is 0.6, then d=｜0.64-0.65｜=0.01. The bandwidth B=3\*0.01 The order weight m(d)=max(0，1-（0.01/0.03)^2)=0.89
* Point Income for a Single Order Amount = Order Amount \* (Order Duration (seconds) / 86400) \* Distance \* Weight \* Daily Yield \* 1000$
* Meaning: The closer to the mid-price, the more it represents a verifiable instant view resulting in higher points

#### 2.3.2 Daily Acquired Token Point Calculation Model&#x20;

TotalScore = (Σ (Daily Point Income for all orders) \* Cancellation Penalty Coefficient) \* Reward Multiplier}

* Base Score reflects "continuous provision of tradable size". MM Score is then weighted by closeness to mid on this base, reflecting "view verifiability"
* Points obtained by the user are settled daily

#### 2.3.3 Display of Acquired Point Rewards&#x20;

* A specific order displays whether it is receiving point rewards in the order book
* For multiple orders at the same price level, the number of active orders must be displayed

### 2.4. Daily Token Point Allocation and Conversion&#x20;

* **Yield Benchmark**: The baseline is set at 4% p.a. , which converts to a daily yield rate of 0.010959%.
* **Definition**: $1 VIZOToken = 1000 Token Points.
* The user's daily MM point income is updated on the following day.
* User's token points are summarized monthly and reset for recalculation the next month.

### 2.5. Anti-Gaming&#x20;

To ensure market-making orders are genuinely "expressing a view" rather than purely occupying positions for scoring:

* **Cancellation Penalty**: For addresses with a high daily cancellation rate, the Score is multiplied by γ（=<30%→1.0，50%→0.9，80%→0.7）.
* **Lag Threshold**: In-band threshold 0.98B, out-band threshold 1.02B, to prevent rapid entry /exit due to boundary jitter
* **Single Layer Cap**: An upper limit on the visible size that counts for scoring at the same price level (prevents massive single-point order injection)
* **Entity Merging**: Address scoring for the same entity is merged based on device/signature/funding path, preventing scoring with multiple accounts
* **Extreme Range = 0 Points**: When the mid-price falls into the extreme range, no order can receive points, forcing genuine two-sided depth

### 2.6. UI/UX Requirements&#x20;

* **MM Switch**: When permissions are not unlocked (transaction volume < $100), the button should be grayed out and display unlocking guidance
* **Super Double**: When monthly transaction volume is above $500U, the Super Double feature for MM reward points is activated
* **In-Band Feedback**: The price slider/input box should display in real-time "Is it in the band?", "Distance to mid (tick)", and "Warm-up countdown"
* **View Prompt**: A pop-up prompt appears near the mid-price saying "Higher contribution to price discovery"
* **Points Acquisition Display**: For multiple orders at the same price level, the number of active orders must be displayed
* **Monthly Total Points Acquired Display**: Updated daily, reset monthly
* **Withdrawal Count**: After the airdrop starts, the user must be clearly informed of the remaining available token withdrawal count

### 2.7.Parameters (Default)&#x20;

| **Parameter**     | **Default** | **Description**                                                    |
| ----------------- | ----------- | ------------------------------------------------------------------ |
| tick              | 0.01        | Minimum quote step                                                 |
| band              | 3×tick      | Radius of the effective order placement range                      |
| warmup            | 120 s       | Time until order starts accumulating score after entering the book |
| min\_size\_reward | 50 shares   | Minimum effective size                                             |
| extreme\_low/high | 0.10 / 0.90 | Extreme range thresholds (0 points)                                |
| token\_to\_points | 1000        | 1 Token = 1000 Points                                              |
| apr\_ref          | 4% p.a.     | $100/day Baseline Annual Percentage Rate                           |

### 2.8 Compliance and Audit&#x20;

* Black/white list markets; Exclusion during abnormal periods (suspension/feed desynchronization).
* Publicly export "Address-Points-Distribution" reports; Tools for random sample re-calculation and event replay.
* Turn off reward points for market making when abnormal order injection occurs.

***

## 3. Strategic Partner Market Making Mechanism&#x20;

### 3.1 Rules Overview&#x20;

* Partners buy dual-direction contracts on designated prediction events. The funds are settled on-chain, forming Open Interest (OI) data.
* Partners retrieve their funds after the contract expires.
* Tokens are returned based on the length of time the capital remains in the contract.
* Strategic Partner qualification is approved by the official team

### 3.2 Metric Definitions&#x20;

| **Metric**                  | **Definition**                                                                |
| --------------------------- | ----------------------------------------------------------------------------- |
| Limit Order Book            | Buying dual-direction contracts on prediction events, never resulting in loss |
| Open Interest (OI)          | Locked outstanding contracts                                                  |
| Maker Fee                   | 0%                                                                            |
| Taker Fee                   | 0%                                                                            |
| VIZO\_TokenPrice(USDT)      | 0.3                                                                           |
| Staking Duration            | Days                                                                          |
| Daily Capital Yield Rate    | Compensation for capital usage given when capital settles on-chain            |
| VIZO\_Token Withdrawal Rule | Allowed to withdraw once every 30 days                                        |

### 3.3 Yield Plan&#x20;

| **OI Amount Lower Bound** | **OI Amount Upper Bound** | **Daily Capital Yield Rate** | **Daily Tokens Acquired** | **Annualized Yield Rate of OI Capital** | **Monthly Tokens Withdrawable** | Estimated Annual Net Yield (USDT) |
| ------------------------- | ------------------------- | ---------------------------- | ------------------------- | --------------------------------------- | ------------------------------- | --------------------------------- |
| 0                         | $1,000,000                | 0.0200%                      | 666.7                     | 7.30%                                   | 20000.0                         | 72000.0                           |
| $1,000,001                | $2,000,000                | 0.0240%                      | 1600.0                    | 8.76%                                   | 48000.0                         | 172800.0                          |
| $2,000,001                | $4,000,000                | 0.0290%                      | 3866.7                    | 10.59%                                  | 116000.0                        | 417600.0                          |
| $4,000,001                | $7,000,000                | 0.0350%                      | 8166.7                    | 12.78%                                  | 245000.0                        | 882000.0                          |
| $7,000,001                | $10,000,000               | 0.0420%                      | 14000.0                   | 15.33%                                  | 420000.0                        | 1512000.0                         |
| $10,000,001               | $10,000,001               | 0.0500%                      | 16666.7                   | 18.25%                                  | 500000.1                        | 1800000.2                         |

<br>


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