Passive Income
At SolPod, our top priority is generating passive income for $SOLPOD holders through a suite of DeFi/Web3 products we develop.
Last updated
At SolPod, our top priority is generating passive income for $SOLPOD holders through a suite of DeFi/Web3 products we develop.
Last updated
Each project that SolPod incubates, with our first & flagship product being Moonbags, will generate a revenue stream that provides $SOLPOD holders with passive income. This revenue stream is built into whatever products we launch via a smart contract function. For Moonbags, $SOLPOD holders receive ~17% of the Moonbags revenue generated by service fees. As one of our products grows and when we add further products, the revenue stream that $SOLPOD holders receive also grows.
The amount of the revenue generated by our product suite that a $SOLPOD holder receives is determined by the amount of tokens they hold, i.e. the amount you receive is proportional to the amount of tokens you hold. To be eligible for revenue sharing you must hold above 1M $SOLPOD tokens. This information is extracted by taking a snapshot of our token holders using a script we have written (shows holder's wallet + amount of $SOLPOD tokens they hold). The revenue share is sent in $SOL on a weekly basis automatically to your wallet that holds $SOLPOD
Unsurprisingly, at SolPod we value our community and hence want to reward + incentivise long term holding. We achieve this through our weighted revenue allocation:
70% of our revenue is split between 1M+ $SOLPOD holders that are present in all 3 of the snapshots we take on random days/time during the week leading up to the $SOL airdrop. This rewards + incentivises long term holding.
30% of our revenue is split between all 1m+ holders (including those that are in the 70% above) that are present in the final snapshot taken before the $SOL airdrop. This is to reward any new holders as well as provide some volume on our chart.
Please note, some of the revenue produced by our products will also be used to buyback-burn, this will not be done on a specific periodic basis, but rather be timed with market downside to counteract any downward price action.
To airdrop the revenue stream to $SOLPOD holders, we use a multisender to send the $SOL directly to the $SOLPOD holders wallet, based on the amount we calculated using our snapshot. As mentioned, this occurs on a weekly basis.
Disclaimer: please do not use this as a literal representation of what product revenue streams will bring for $SOLPOD holders. Predictions for a new product are complex as no competitors currently exist, hence we have given three different possible scenarios: low, mid and peak adoption. As our product launches, we will reassess our predictions upon gathering more data. For now we have aimed to use realistic numbers based off of our closest competitor - sol incinerator.
According to solscan, sol incinerator (the most comparable current competitor) had 30K users last week (as of May 2024). For the sake of predicitions we will use 3 scenarios for Moonbags:
Low: 2K users/week
Mid: 5K users/week
Peak (bull run): 15K users/week
Please be aware that these numbers are predictions, it is extremely hard to guess this correctly given that there is no current competitor, we have tried our best to use a reasonable prediction!
We predict an average of $100 in value extraction per user (e.g. 20 coins ~$5 each) - some snipers/traders will have 100s of coins!
Total weekly Moonbags revenue:
Low: $100 * 2,000 = $200K
Mid: $100 * 5,000 = $500K
Peak: $100 * 15,000 = $1.5M
Once again, please be aware that it is very hard to predict the average value extraction per users, as well as how often the use the product. The purpose of this numerical process is to give an idea of what revenue could be under different conditions, rather than a literal prediction.
$SOLPOD rewards amount to a service fee of 5% on all Moonbags transactions, this amounts to $10K in weekly revenue share in the low scenario, $25K in mid and $75K in high. Due to discounts via referral codes and $MBAGS/$SOLPOD holdings, these figures are slight overestimations.
$SOLPOD revenue share:
Low: $200K x 0.05 = $10K
Mid: $500K x 0.05 = $25K
Peak: $1.5M x 0.05 = $75K
Using the current snapshot (as of May 2024), a 1M holder would receive 0.1425% of the total weekly revenue share.
$SOL airdrop for 1M holder:
Low: 0.1425% * $10K = $14.275
Mid: 0.1425% * $25K = $35.625
Peak: 0.1425% * $75K = $106.875
At current mc 1M $SOLPOD = 1.45 $SOL ($205.50)
At peak adoption a 1M $SOLPOD holder would receive $106.875 per week taking them less than 2 weeks to get back current initial investment. Even under low adoption it is a 7% weekly ROl.
Time to get back initial investment:
Low: $205.50 / $14.275 = 14 weeks
Mid: $205.50 / $35.625 = 5.7 weeks
Peak: $205.50 / $106.875 = 1.9 weeks
*Additional note: this assumes every holder gets a proportional amount to their $SOLPOD holding. In reality, our long-term holders are rewarded even more thanks to the 70%/30% split mentioned above, which incentivizes long term holding!
we will expand to other chains eventually, therefore bringing even more revenue in
this method should be less prone to red/sideways markets compared to our old trading-revenue-based model, which struggle under market downsides. In fact, there could even be some increase in revenue during sideways markets as users try to maximise value extraction from their dead coins
$SOLPOD holders could also invest their passive income in $SOL back into $SOLPOD making it a compounding machine!
Lastly, this is just ONE SolPod-incubated product. Several more will form the final passive income stream for $SOLPOD holders
