Bitdollar Fund Rewards Programs

Bitdollar Capital
7 min readDec 31, 2019

Bitdollar Fund offers rewards programs and other bonuses in order to both reward active investors as well as grow assets under management (AUM). The larger that Bitdollar Fund’s AUM is, the more influential and more negotiating power that it will have as a collective organization or investor bloc. Bonuses for all ICO investors will begin from Phase 2 onwards as a way to encourage buying directly from Fund as opposed to on the open market with a third party exchange. The formula below demonstrates how the number of issued Tokens is calculated given the amount bought at market rates in Phases 2 through 7:

For Investor, Per ICO Purchase:

BTD Issued = BTD Purchased At Market Value x (1 + Total Bonus %)

Total Bonus % = Rewards Program Bonus % + Seasonal Bonus % + Weekly Target Bonus %

It is important to note that while the Fund offers 2 different rewards programs, the Investor Rewards Program and the Content Contributor Rewards Program, only the higher rewards bonus percentage will be used as their Rewards Program Bonus Percentage in the above formula. To be clear, the bonus percentages of our two different rewards programs, the Investor Rewards Program and the Content Contributor Rewards Program, cannot be combined.

Investor Rewards Program

The Fund will establish a rewards program for investors that will both clearly identify their individual level as an investor as well as provide additional bonuses for Tokens, or Bitdollars (BTD), purchased in the Token Launch in the following calendar year. The Investor Rewards Program grants a Rewards Program Bonus Percentage in the following calendar year based on a member’s investment activity in BTD during the current calendar year:

Rewards program levels and their associated Rewards Program Bonus Percentages are only valid for one calendar year, and the number of Tokens (BTD) bought in subsequent calendar years would need to be maintained in order to keep the same rewards program level of the Investor Rewards Program going forward.

There is one exception to the expiration of Investor Rewards Program benefits every calendar year, and that is for the lifetime rewards levels that are granted to investors in Phase 1 according to the following table:

Since Phase 1 investors will be taking more risk than investors in subsequent phases of the ICO, rewards programs levels achieved will be granted to them on a lifetime basis. There is also a higher quantity of Rewards Program Bonus Percentages available in Phase 1, and this is to encourage a higher average level of investment per member, which will be important at such an early stage for the Fund. It is important to note that the above table for Phase 1 is in US Dollars whereas the previous table showing rewards program levels for investors in Phases 2–7 is in Bitdollars (BTD).

In the event that an investor achieves a higher yearly rewards program level on an investment activity basis compared to their lifetime rewards program level, the Rewards Program Bonus Percentage from their yearly activity will be used since it is the higher value.

Content Contributor Rewards Program

Content contributors should be rewarded well for their contributions beyond what they earn in CPRO, and the Fund will establish a rewards program for them that will both clearly identify their individual level as a contributor as well as provide additional bonuses for Tokens, or Bitdollars (BTD), purchased in the Token Launch in the following calendar year. The following table displays our rewards program for content contributors and the Rewards Program Bonus Percentage associated with each level:

For an example, a content contributor that had CPRO earnings in a calendar year that was in the top 10thpercentile of all content contributors, but below the 5th percentile, would qualify for the Gold rewards level for the following calendar year. The Gold rewards level features a Rewards Program Bonus Percentage of 2% towards all purchases of Bitdollar (BTD) in the Token Launch during the following calendar year.

Rewards program levels and their associated Rewards Program Bonus Percentages are only valid for one calendar year, and the number of Tokens (BTD) bought in subsequent calendar years would need to be maintained in order to keep the same rewards program level of the Content Contributor Rewards Program going forward.

Seasonal Bonuses

Seasonal bonuses will be available to all investors in Phases 2–7 that pass a KYC/AML identity screen and buy Tokens from the Fund at market pricing. Tokens purchased directly from the Fund in Phases 2–7, and the associated bonus Tokens, will be locked up for a period of 5 weeks. The purpose of this bonus is threefold: to increase assets under management more aggressively throughout the year, to reward all investors more towards the end of the year and especially during the holiday season, and to encourage a greater level investment toward the end of the year to stave off the effects of dilution since the cryptocurrency market has a tendency to perform well in the fourth quarter of every calendar year.

Weekly Target Bonuses

Weekly target bonuses will be available to all investors in Phases 2–7 that pass a KYC/AML identity screen and buy Tokens from the Fund at market pricing. The desire of this bonus is to increase the number of Tokens sold weekly by the Fund by using collective investor targets.

Weekly target bonuses are awarded if the amount of Tokens sold in a week surpasses one of the three weekly bonus targets. These three weekly targets are determined by being 10%, 25%, or 50% higher than the “Rolling Weekly Average”, which is determined by the following formula:

Rolling Weekly Average (RWA) Calculation:

RWA = Maximum (Average BTD Sold In Last 3 Weeks, Average BTD Sold In Last 52 Weeks)

The “Rolling Weekly Average” metric puts more importance on recent (last 3 weeks) weekly Token sales if performing historically well. If recent (last 3 weeks) weekly Token sales are underperforming historically, then the average weekly Token sales for the last 52 weeks will be used instead for weekly target bonus level purposes. In the event that there are less than 52 weeks of Token sales data, the average Token sales for the number of weeks of data available will be used instead.

Tokens purchased directly from the Fund in Phases 2–7, and the associated bonus Tokens, will be locked up for a period of 5 weeks.

Example Scenario And Calculation

Let’s assume that it is December 1st, 2020 and Investor A (who is Diamond level under the Investor Rewards Program and is Silver level under the Content Contributor Rewards Program) purchases 10,000 BTD at market rates. Additionally, all the other investors that purchased Tokens during the week (November 29, 2020 — December 5, 2020) with Investor A collectively beat the “Rolling Weekly Average” by 15%, qualifying for Target 1 bonus of 1%:

For Investor A’s December 1st, 2020 Token Purchase:

Total Bonus % = Rewards Program Bonus % + Seasonal Bonus % + Weekly Target Bonus %

Total Bonus % = 3% (Diamond Level) + 5% (December) + 1% (Beat RWA By More Than 10%, But Less Than 25%) = 9%

BTD Issued = BTD Purchased At Market Value x (1 + Total Bonus %)

BTD Issued = 10,000 x (1 + 9%) = 10,000 x 1.09 = 10,900

Investor A’s Total Bonus Percentage for this purchase is 9% due to the combination of their Rewards Level Bonus of 3% as a Diamond Level investor, their Seasonal Bonus of 5% for purchasing in December, and Weekly Target Bonus of 1% by beating the Rolling Weekly Average by more than 10%, but less than 25%. Although Investor A only purchased 10,000 Tokens (BTD) from the Fund at market rates in this hypothetical scenario, the investor received a total of 10,900 BTD due to receiving 900 additional BTD for free as a bonus.

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*Cryptocurrency investing involves significant risk of loss and is not suitable for everyone. Please do your own research or consult your investment professional before investing. Citizens of the USA, Canada, Cayman Islands, Estonia, China, South Korea, Singapore, & New Zealand are not eligible to participate in Phase 1 of the Bitdollar ICO, however, we are working to accept citizens from these countries during future phases of our ICO in 2020 and beyond.

Nick Kitcharoen is Founder and CEO of Bitdollar Capital, which recently launched its private sale for Bitdollar Fund, an incentivized worldwide investment club for major cryptocurrencies. Both planned collectively managed funds from Bitdollar Capital aim to provide clarity to the cryptocurrency community by guiding fundamental analysis and facilitating research, while also providing a relatively safe place for those that are new to cryptocurrencies to get started. Nick has a background in corporate finance and trading in financial markets and was most recently Founder and CEO of Acumen Algorithms LLC, a formerly registered Commodity Trading Advisor, where his sole focus was the development of trading algorithms based entirely on technical analysis.

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Bitdollar Capital

Bitdollar Capital is the management company of two soon to be released cryptocurrency funds.