Affiliate Rewards Explained

Affiliate Rewards Explained

In the given example, let's break down how the referral rewards were calculated:

  1. Total Raise: The project raised 100 ETH

  2. Referral Reward Percentage: The project allocated 5% of the raise for referral rewards, which amounts to a total reward pool of 5 ETH

  3. Total Referred Buys: The total worth of buys referred was 20 ETH

Now, to calculate the actual total reward, we use the formula: Total Reward=Total Referred Buys Γ— Referral Reward Percentage Total Reward=Total Referred Buys Γ— Referral Reward Percentage

Substituting the values: Total Reward=20 ETHΓ— 5%= 1ETH

So, the total reward pool is 1 ETH.

Next, we allocate the rewards among the referrers based on their contribution:

  • Referrer X referred friends who bought 10 ETH.

  • Referrer Y referred friends who bought 6 ETH.

  • Referrer Z referred friends who bought 4 ETH

We calculate each referrer's share of the reward pool:

  • Referrer X: (10 ETH/20 ETHΓ—1ETH)=0.5 ETH (50% of the reward pool)

  • Referrer Y: (6 ETH/20ETH Γ—1 ETH)=0.3 ETH (30% of the reward pool)

  • Referrer Z: (4 ETH/20 ETH Γ—1 ETH)=0.2 ETH (20% of the reward pool)

So, each referrer received the following rewards:

  • Referrer X: 0.5 ETH

  • Referrer Y: 0.3 ETH

  • Referrer Z: 0.2 ETH

This allocation ensures that the rewards are distributed proportionally based on the amount referred by each referrer.

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