# Ecosystem value flow

## Revenue Flows

The flow diagram below shows the value flow of revenue, $RATE and rewards throughout the entire weRate ecosystem.&#x20;

<figure><img src="/files/KbWUW4reomyNBNNedC8y" alt=""><figcaption><p>$RATE Flow &#x26; Distributions</p></figcaption></figure>

Starting from the top, revenue comes in through different sources.

* In-App spendings : $RATE spendings associated to GameFi mechanics & marketplace sales excluding NFT sales. These spendings are directly associated with user engagement.
* 3rd Party Revenue : External (non-user) revenue : venue subscription, advertising, data related revenue, table-booking fees...
* NFT Sales : Marketplace sales related to our NFT collections. (ex. Bohemians)

Revenue is distributed via a transparent system to 3 main pools: Reward Pool, Burn Pool and Foundation.&#x20;

* Reward Pool : The $Rate token pool is distributed to users through consistent cadences of in-app public leaderboards.
* Foundation : The funds allocated to the Foundation will be allocated strategically to support all operational needs, including team salaries, third-party services, marketing efforts, contributions to the DAO, and the development of a Treasury for future initiatives.
* Burn Pool : 2.5% of all daily in-app spendings are burned with a maximum burn of 25% of all $Rate tokens.

Percentages shown are the initial configurations, and subject to change depending on market conditions and Foundation decisions.

## Reward Pool Mechanism

At the end of every month, 2.5% of the total reward pool will be allocated to next months public leaderboard rewards.  The reward allocation from the monthly reward pool is distributed across three timeframes—weekly, monthly, and quarterly—to ensure a balanced and engaging reward system:

* Weekly Rewards (20%)
  * Only the general leaderboard is rewarded during the weekly period.
* Monthly Rewards (60%)
  * General leaderboard: 35%
  * Rarity leaderboard: 5%
  * Category leaderboard: 15%
  * Country leaderboard: 5%
* Quarterly Rewards (20%)
  * Rewards are accrued over three months and distributed as follows:
    * Rarity leaderboard: 5%
    * Category leaderboard: 10%
    * Country leaderboard: 5%

Important. The 2.5% allocation is calculated based on a pool of 50,000 Bohemian users. The monthly allocation will follow a linear distribution, starting at 0.1% and increasing with the user base until it reaches the desired allocation velocity.

## Airdrop Event

Rewards distributed during airdrop events prior to the Token Generation Event (TGE) on Zealy and within the app will be deducted directly from the overall reward pool. Only these specific pre-TGE rewards are accounted for in this deduction, ensuring the token allocation remains fair and sustainable for the platform's broader ecosystem.


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