HODL Rewards: How do they work on CoinLion?

The CoinLion HODL Program is like staking, but without the risk. Here are the rules of how it works.

The intent of the HODL program is to reward users who are the biggest advocates of the CoinLion Token (LION). Specifically, those users who wish to hold onto their LION long term and have a higher percent of their LION in the HODL program.

As an example; a user who puts 90% of their LION into the HODL program will be rewarded at a higher rate than a user who HODLs 10% of their LION. Additionally, a user who is constantly selling their LION won’t have the same level of rewards as the user who is not selling. 

Here are the details on how it works:

• There is a daily allocation of LION that is given each and every day.
• There is no guaranteed rate of return.
• You only receive the LION rewards if you complete the total length of the HODL program. Removing LION from the HODL program before the term has ended will forfeit any accrued rewards up to that point.
• You can cancel your HODL program at any time and your “principal” amount of LION is never at risk of being penalized.  Example: If you HODL 20,000 LION, you can get that 20,000 back whenever you want. But, you will forfeit 100% of the accrued rewards when removing LION from the HODL before the period has completed.
• If you enroll in the 6 or 12-month HODL program, you can always extend to a longer HODL period without changing your start date. Your accrued rewards will not change when you upgrade to a longer period.
  • Example: You'll keep any rewards you accrued during a 6-month program, but if you upgrade to the 12 or 18-month program, you will instantly be eligible for the higher quantity of LION rewards that comes with the longer HODL period.
• At the end of the year, all users who participated in the HODL program will be eligible to vote on key drivers within the CoinLion platform that directly impact CoinLion users. Your voting ability is based up on how much LION was rewarded to you through the HODL program. The more rewards from the HODL program means you have a heavier voting weight.

HODL Weighting:

Annual HODL Allocations:  

We have a specific amount of LION allocated to the HODL Program each year. Every two years, the allocation decreases by 20% for 20 years. The allocations are:

• 2024:  1,000,000 Annual Allocation / Daily HODL Allocation:  2,739.726
• 2025: 1,000,000 Annual Allocation / Daily HODL Allocation:  2,739.726
• 2026:  800,000 Annual Allocation / Daily HODL Allocation:  2,191.780
• 2027:  800,000 Annual Allocation / Daily HODL Allocation:  2,191.780
• 2028:  640,000 Annual Allocation / Daily HODL Allocation:: 1,753.42
• 2029:  640,000 Annual Allocation / Daily HODL Allocation::  1,753.42
• Etc.

Daily HODL Allocation Algorithm

Calculate the total daily reward pool (2,739.72 LION) and the distribution percentages:

• 60% of daily reward pool for users in the 18-month program = 1,643.8356 LION
• 30% of daily reward pool for users in the 18-month program = 821.9178 LION
• 10% of daily reward pool for users in the 18-month program = 273.9726 LION

Calculate the daily pool distribution using the HODL Weighting multiplier table in the section above: 

• HODL Weighting is calculated using a combination of how much of a user’s portfolio is committed and how much LION, as a percent of their portfolio, they sold in the last year.
• Take the HODL Weighting multiplier times the quantity of LION the user has HODL’d.
• Example: User 1 HODLs 10,000 LION and has a 1x HODL Weighting, equating to 10,000 LION being contributed. User 2 has 5,000 LION, but a 4x HODL Weight, equating to 20,000 LION.
  • The total, combined pool size would then be 30,000 LION. 10,000 (33.33% of pool) for User 1 and 20,000 (66.66% of pool) for User 2.
  • User 1 would receive 33.33% of the Daily Rewards while User 2 would receive 66.66%. If these were the only users in the 18-month program, then User 1 would receive 33.33% of the 1,643.8356 and User 2 would receive 66.66% of it. Even though User 2 HODL’d fewer LION, they contributed more because of the weighting, and therefore received more of the rewards. 

• The HODL program incentivizes users who HODL a higher percent of their LION and who are not actively selling their LION.
• Users are more than welcome to sell their LION, they just will not receive the same rewards as those who HODL.

Disclaimer: These guidelines are subject to change at any time. Any changes will be posted here.