Performance mining incentivizes participants, distributes DHT to active members of the dHEDGE ecosystem, and rewards well-performing managers.
Performance mining works in two ways: rewarding investors with DHT tokens for investing in well performing pools and rewarding Pool managers for also performing well. This is accomplished by distributing DHT to investors in eligible pools.
- Maximum reward distribution of 35k DHT per week divided among investors
- Earn up to 100 DHT per month with no vDHT staking requirement
- For rewards over 100 DHT per month, you need to have staked DHT according to this formula: Max monthly rewards = vDHT/12
Currently, performance mining rewards are capped for investors who do not have DHT staked. That is, the limit for rewards of those who do not have DHT staked is lower than for those who do.
DHT for Performance mining is part of the DHT emissions, meaning newly minted DHT is distributed as part of this process.
To participate in performance mining, Pools need to:
- Have a positive Sortino Ratio (meaning they have returns above a certain threshold)
- Be created for at least 4 weeks
- Be a Public Pool, open to anyone
- Have a Pool Score (requires the pool to have a 20% minimum yearly return)
Eligible pools are clearly marked with a mining symbol on the dHEDGE Leaderboard. Note that Managers that invest in their own pools are considered investors and can earn rewards like everyone else.
Only investments into eligible pools count towards rewards. Eligibility criteria are subject to change.
Rewards are distributed pro-rata based on the value of everyone’s investments. Maximum reward distribution of 35k DHT per week divided among investors. The amount distributed may be less than 35k DHT per week depending on users meeting the staking requirement.
Users can earn up to 100 DHT per month with no vDHT staked. For rewards over 100 DHT per month, a user would need to have staked DHT according to this formula: Max monthly rewards = vDHT/12.
Rewards are distributed monthly, claimable in the dHEDGE app for Ethereum, and airdropped to users on Polygon.
- On December 10, 2020, a snapshot was taken and 50,000 DHT were distributed to investors on the platform that fulfilled the criteria for Performance Mining at the time. Early user rewards were locked for 3 months.
- In March 2021, the performance mining program was extended for another 2 months.
- In October of 2021, performance mining changed to performance mining v2 which may reduce monthly DHT emissions, but also extends performance mining indefinitely. There is also no longer a lockup time on rewards distribution. Governance vote for this: https://gov.dhedge.org/#/proposal/QmbpMQbVteWxDzkxidPtjFLD44bVhfowa1GFdMMKQh4FQs.