# Season 3 Rewards

Season 3 is designed to reward **useful, real economic activity on LiveArt** — not speculation, passive holding, or artificial volume.

Season 3 rewards users who:

* Buy RWAs (especially when paying with ART)
* Generate protocol fees
* Participate in buyouts

Season 3 does **not** reward:

* Holding ART without using the platform
* Staking ART just to earn yield
* Short-term flipping or wash trading

The core idea is simple:

> **If you help the LiveArt economy function, you get better economics on the platform.**

ART is treated as the **native currency of LiveArt**, and Season 3 encourages productive circulation of ART through rebates, discounts, and privileges.

***

### Overview of Season 3 Mechanics

Season 3 consists of four tightly linked components:

1. **Contribution Score** – a transparent, activity-based ranking metric
2. **Reward Tiers** – percentile-based tiers derived from Contribution Score
3. **ART Payment Rebates** – predictable rebates when paying for RWAs with ART
4. **ART Staking as a Cap Booster** – optional commitment that increases reward limits, not reward rates

No single component works alone — they reinforce each other.

***

### Contribution Score

The Contribution Score measures **how much real economic value a wallet contributes** during Season 3.

It is recalculated weekly and finalized at the end of the season.

#### What counts toward Contribution Score

Contribution Score is based on **three signals only**:

1. **ART Spend on RWAs** – choosing to use ART to buy real assets
2. **Protocol Fees Paid** – revenue generated for the platform
3. **Buyout Participation** – engagement in real liquidity events

***

### Contribution Score Formula

Let `w` be a wallet.

#### Inputs

* `S_w` = USD value of RWA purchases paid with ART
* `F_w` = USD protocol fees paid (5% primary, 1% secondary, buyout fees)
* `B_w` = number of buyout events participated in

#### Component Scores

**ART Spend Score**

```
SS_w = 100 × ln(1 + S_w / 100)
```

**Fee Score**

```
FS_w = 140 × ln(1 + F_w / 10)
```

**Buyout Score**

```
BS_w = 50 × B_w 
```

#### Total Contribution Score

```
CS_w = SS_w + FS_w + BS_w
```

#### Anti-Abuse Rules

Activity is excluded if it involves:

* Self-trading or same-wallet counterparties
* Buy/sell round-trips of the same asset within 24 hours
* Obvious counterparty loops or wash trading

Gas fees never count.

***

### Reward Tiers

Reward tiers are based on **percentiles of Contribution Score**, not absolute thresholds.

#### Season 3 Reward Tiers

<table data-header-hidden><thead><tr><th></th><th width="109.0390625"></th><th></th><th></th><th></th><th></th></tr></thead><tbody><tr><td><strong>Tier</strong></td><td><strong>Percentile</strong></td><td><strong>Description</strong></td><td><strong>Rebate on ART-Paid RWA Purchases</strong></td><td><strong>Rebate Cap (per wallet / season)</strong></td><td><strong>Additional Benefits</strong></td></tr><tr><td>Tier 0 – Participant</td><td>All eligible</td><td>Any wallet with qualifying activity</td><td>10% (base)</td><td>—</td><td>Leaderboard visibility</td></tr><tr><td>Tier 1 – Active User</td><td>Top 50%</td><td>Regular retail users</td><td>15%</td><td>$500</td><td>Platform credits for fees or future RWAs</td></tr><tr><td>Tier 2 – Core Contributor</td><td>Top 20%</td><td>Frequent buyers and ART users</td><td>15%</td><td>$1,500</td><td>0% (or 50% discounted) trading fees, early analytics access</td></tr><tr><td>Tier 3 – Power User</td><td>Top 5%</td><td>Highly engaged users</td><td>20% (hard cap)</td><td>$5,000</td><td>50% buyout fee discount, priority support, Season 3 badge</td></tr><tr><td>Tier 4 – Strategic Contributor</td><td>Top 1%</td><td>Top ecosystem contributors</td><td>20%</td><td>$5,000</td><td>Asset sourcing calls, early visibility into upcoming RWAs, opt-in recognition</td></tr></tbody></table>

#### Important Tier Principles

* Maximum rebate rate is **20%**
* No tier provides guaranteed allocations
* Top tiers unlock **better economics**, not speculative upside

***

### ART Payment Rebates

When a user pays for an RWA using ART:

* A rebate is accrued based on their tier
* Rebates are capped per wallet per season
* Rebates may be paid in ART or platform credits

Rebates are **merchant-style discounts**, not yield.

***

### ART Staking (Optional)

ART staking is **not required** to earn Season 3 rewards.

Staking ART:

* Does **not** increase Contribution Score
* Does **not** move users between tiers
* **Only increases the maximum rebate cap** a user can receive

#### Staking Cap Multiplier

Let `A_w` be ART staked.

```
M_w = 1 + 0.30 × ln(1 + A_w / 5000)
M_w ≤ 1.6
```

Effective rebate cap:

```
Cap_w = Base Tier Cap × M_w
```

This ensures ART staking only benefits **active users**.

***

### Transparency & Reporting

Every month, LiveArt will publish a Season 3 update in a consistent format:

* Active wallets
* ART used for RWA purchases
* Protocol fees generated
* Rebates accrued
* Tier distribution

Example:

```
Season 3 – Month 2
• Active wallets: 1,284
• ART used: $182,000
• Protocol fees: $11,400
• Rebates accrued: $3,200
• Tier distribution:
  - Tier 3: 64 wallets
  - Tier 2: 256 wallets
  - Tier 1: 642 wallets
```

***

### Summary

Season 3 is intentionally "boring" in the right way: no speculation, no artificial scarcity - just better economics for users who actually use LiveArt.

This structure is designed to be:

* Sustainable
* Transparent
* Fair
* Defensible