> For the complete documentation index, see [llms.txt](https://tifotrade.gitbook.io/tifo/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tifotrade.gitbook.io/tifo/how-it-works/dao-and-incentives.md).

# DAO and Incentives

## DAO proceeds distribution 

DAO proceeds are derived from DAO contracts and are allocated as follows:

|     Projects    | Proportion |
| :-------------: | :--------: |
| Nodal Dividends |     40%    |
|  $veIFO Rewards |     20%    |
|    Foundation   |     40%    |

## Nodal Dividends

DAO nodal has three levels, namely the primary nodal, intermediate nodal, and senior nodal. The requirements of each level are as follows:

|      Nodal level      |                          Primary Nodal                          |                             Intermediate Nodal                             |                                   Senior Nodal                                  |                            Advanced nodal cultivation nodal                            |
| :-------------------: | :-------------------------------------------------------------: | :------------------------------------------------------------------------: | :-----------------------------------------------------------------------------: | :------------------------------------------------------------------------------------: |
| Protocol contribution | <p>Direct invite 3 value users, team sTIFO</p><p>≥3,000,000</p> | <p></p><p>Direct invite 3 primary nodals, team sTIFO</p><p>≥10,000,000</p> | <p></p><p>Direct invite 3 intermediate nodals, team sTIFO</p><p>≥50,000,000</p> | Intermediate nodal directly invited by the senior nodal is upgraded to an senior nodal |
|     Dividend ratio    |                               10%                               |                                     20%                                    |                                       35%                                       |                                           5%                                           |

## DAO Nodal Dividends

#### Dividend Cycle&#x20;

Every 10 days, the 7th, 17th, and 27th of each month are the nodal dividend day. Automatic issuance through smart contracts

#### Dividend basis&#x20;

Every 10 days, the sTIFO (staked TIFO) increment of the nodal community exceeds the static increment, and the corresponding level of dividend is obtained according to the sTIFO increment.

*Nodal community sTIFO Increment➗ Network-wide sTIFO increment  ✖️ DAO income ✖️Dividend  ratio*

#### Dividend calculation

&#x20;Assuming that the price of $TIFO is 10USDT and a nodal is a senior nodal, the nodal community adds a new sTIFO value of 100,000 USDT in a certain dividend cycle, and the incremental value of the whole network sTIFO is 1 million USDT. The DAO income during the dividend cycle is 50,000,000 $TIFO, and the total dividend of the nodal is:&#x20;

*(100,000/1,000,000) 50,000,000\*0.35 = 1,750,000$TIFO*&#x20;

*1,750 ,000\* 0.01USDT = 17,500USDT*&#x20;

*TIFO = 0.02USDT, The total dividend income of the senior node on the 10th is: 1,750,000 \* 0.02USDT = 35,000USDT*

#### Additional notes&#x20;

If the senior nodal does not reach the dividend algorithm, the senior nodal will be skipped, the intermediate nodal will be issued directly and the primary nodal will be paid as a dividend. The three intermediate nodal invited by the senior nodal A will upgrade to the senior nodal, and the senior nodal A will be promoted to a super nodal and becomes the dividend shareholder of Tifo Trade. It will enjoy a weighted dividend of 10% of the revenue of Tifo Trade that will take effect permanently. The number of super nodal promoted is limited.