KPI Uses Cases
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The following outlines how to design KPI incentive campaigns to more effectively achieve your project goals and objectives. Feel free to contact the team to discuss any of these use cases.
Use Case 1: Linear Incentivization
Scenario: Target KPI of $100k Total Value Locked (TVL), with $10k allocated as rewards.
Mechanism: Rewards are distributed proportionally according to KPI achievement.
For example:
If the pool reaches $60k in TVL, then $6k (60% of the reward pool) is distributed.
Use Case 2: Minimum Payout
Scenario: Target KPI of $100k TVL, with $10k allocated as rewards, 80% minimum payout.
Mechanism: $8k (80% of the reward pool) is distributed regardless of KPI outcomes, while the remaining $2k (20% of the reward pool) is only unlocked if the KPI is met.
For example:
If the pool reaches $90k in TVL, then $8k (80% of the reward pool) is distributed.
If the pool reaches $100k+ in TVL, then $10k (100% of the reward pool) is distributed.
Use Case 3: Bonus-Driven Incentives
Scenario: Target KPI of $100k TVL, with $10k allocated as rewards, plus an additional $1k bonus for surpassing performance goals.
Mechanism: Rewards are distributed proportionally according to KPI achievement with a bonus of $1k prorated if TVL exceeds $100k
For example:
If the pool reaches $60k in TVL, then $6k (60% of the reward pool) is distributed.
If the pool reaches $90k in TVL, then $9k (90% of the reward pool) is distributed.
If the pool reaches $100k+ in TVL, then $11k (100% of the reward pool + $1k Bonus reward) is distributed.
Use Case 4: Lower Bound and Upper Bound Incentivization
Scenario: Target KPI of $100k TVL, with $10k allocated as rewards, and a lower limit set at $50k TVL.
Mechanism: Rewards are unlocked only when the TVL exceeds $50k. At that point, rewards are distributed proportionally based on KPI achievement.
For example:
If the pool reaches $60k in TVL, then $6k (60% of the reward pool) is distributed.
Use Case 5: Minimum payout with control limits
Scenario: Target KPI of $100k TVL, with $10k allocated as rewards, 80% minimum payout, 20% prorated between the limits of $50k TVL and $100k TVL.
Mechanism: $8k (80% of the reward pool) are distributed regardless of KPI outcomes. The remaining $2k (20% of the reward pool) will be distributed between the limits of $50k and $100k.
For example:
Ff the pool reaches $75k in TVL, then $8k (80% of the reward pool) is distributed, with an additional 50% ($1k) of the remaining 20% ($2k).
Use Case 6: Tiered reward unlocks
Scenario: Target KPI of $100k TVL, with $10k allocated as rewards, unlocks first set of rewards (50%) if the TVL reaches $50k, with second tier unlock (25%) if the TVL reaches $75k and the final tier unlock of 25% if the TVL reaches $100k+
Mechanism: Below $50k TVL, zero rewards are distributed. Above $50k TVL unlocks the first tier of $5k (50% of the reward pool), above $75k unlocks $2.5k (25% of the reward pool), and above $100k unlocks the final tier of $2.5k (25% of the reward pool).
For example:
If the pool reaches $60k in TVL, then $5k (50% of the reward pool) is distributed. If the pool reaches $90k in TVL, then $7.5k (75% of the reward pool) is distributed.
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