Go To Market - Rewards

Value in High Density And Low-Density Locations

Different locations on planet Earth have different valuations and demands for air rights. For example, in certain cities, the value of air rights can be as much as 60% of the land below it, which makes it useful for real estate developers and traders. These air rights can be moved entirely to other plots of land, helping create skyscrapers where the permitted development rights have been maxed out. In all locations, air rights are valuable.

In Texas, where drone demand is higher than in NYC due to its topography, commercial drone entities want to transit through private suburban airspace but have no permission. These drones are comparable to train carriages with no tracks to operate on.

The demand for air rights is buoyant - using air rights to build upwards, to protect views, for drones to transit and for traders to take positions in.

Different locations have different air rights demand patterns for various reasons at various times; this knowledge is local and highly decentralized. To harness this decentralized knowledge and encourage the market to develop in a healthy and hyper-local way, we have created an incentive structure to reward the SkyTrade network builders and participants.

Points Program (Future Native Token**)

Incentive Structure

The guiding principle of the incentive structure is to reward early community members and builders.

Phase 1 - Points (subject to change)

Points serve as a reward to track those most active in building the network. Every builder is assigned a unique cryptographic wallet upon signing up for the SkyTrade platform, enabling effective tracking.

The top 5% of points earners every 30 days (epoch) get their points boosted. This means every 30 days, you get an opportunity to qualify for additional rewards.

Genesis NFT Staking - SKY Points Rewards

Genesis NFT holders can stake their SkyTrade Genesis NFTs to passively earn SKY Points. The longer you stake, the more points you earn each day - rewarding our community. Staking operates on a Milestone system based on how many consecutive days the NFT remains staked:

Staking is non-custodial your NFTs remain in your wallet, but are locked for trading or transfering while staked. Note: Unstaking resets the timer. If you unstake and re-stake, you begin again at the 0–6 day rate.

Alpha Usage & KYC SKY Points Rewards.

To claim KYC-related SKY Points, users must have used Alpha at least once. Alpha is our demo Air Rights trading platform, available exclusively to Genesis NFT holders. Using Alpha proves that a user is not only verified (KYC complete) but also actively engaging with the core SkyTrade ecosystem. Since Alpha is gated by the Genesis token, this ensures only committed users are rewarded.

Geography

We have designed our points system so customer demand in a region translates into better rewards. Rewards are given for actions beneficial to building the network, like registering air rights, referring air rights owners, transacting airspace, and collecting drone flight data. A contributor is not required to be in the region where air rights registration is located if they have referred it. Air rights are decentralized and borderless within SkyTrade.

Increased Rewards

Air rights are decentralized, and soon-to-be fully networked infrastructure. Decentralization leverages the localized knowledge of countless individuals, allowing the network to self-regulate and adapt quickly and efficiently to allocate resources based on needs and preferences.

Hyper-local Hexes allow highly motivated network participants to mint a unique token related to a specific Hex at various locations. Hexes provide a hierarchical grid system that divides the Earth's surface into hexagons of varying sizes, allowing for easy location-based indexing, search, and analysis.

The Hexes will be released with a price-based demand, and on the current and future air rights valuations within the Hex. Holding an NFT Hex is not a requirement to develop the network in any location. Participants qualify for rewards with or without an NFT Hex. It serves as an effective mechanism to get rewards for the network's most prolific builders.

Builders can be anyone who develops the Hex well - examples include DePIN miners, students, at-home workers, HOA managers, real estate enthusiasts, farmers, asset managers, City Hall or anyone in between.

Each of the minted NFT Hexes has certain rights and obligations which allow the owners to benefit from the growth of Earth's first air rights marketplace. NFT Hex holders are entitled to rewards based on the revenue derived from their work, which leads to air rights transactions within the HEX. For example, air rights in NYC have changed hands for in excess of $160M a parcel. In Dallas, Texas, thousands of drone deliveries are happening, adding value to the network and air rights owners' assets. With SkyTrade, the fees collected from transactions are divided between the air rights owners and the protocol, and the NFT Hex holder receives a % of the protocol's portion of their revenue in that Hex as a reward for their work.

Every new air rights parcel claimed and validated within the Hex adds value to the Hex and the network as a whole. The NFT Hex holder is rewarded for building their hyper-local network by bringing in new air rights owners and trading air rights assets from the Hex.

To ensure the continued ownership and value of the NFT Hex, the holder must construct and maintain a healthy, stable, and value-increasing Hex. The initial requirement for Phase 1 is to increase air rights coverage in the Hex, according to its map. A Hex owner is comparable to a network miner in conventional proof-of-work projects, with air rights covering the airspace above the Earth's surface.

Hex Rewards

1. For each new air rights claim validated in the Hex, the Hex owner receives 100 SKY points.
2. If the Hex owner has referred the air rights claimant, they receive 200 SKY points.
3. Hex owner receives *10% of the protocol fees collected in that Hex post-TGE.

How To Get A Hex

1. Choose the Hex you want to build in.
2. When the NFT Hex is released, request to stake the appropriate $SKY tokens ($SKY - platform’s native token). The number of tokens required to stake to receive the NFT Hex is based on the Hexes long-term value.
3. When your stake is accepted, your $SKY tokens are staked, and you will receive the NFT Hex.

How To Lose A Hex

1. Underperformance within the Hex may lead to tokens being unstaked and the Hex being re-assigned. The metric for underperformance for Phase 1 is the area of the Hex covered by valid air rights claims. This program is in development and will be released to the community.

The Advantages Of The System

This system encourages NFT Hex holders to work and expand the regions where the protocol aims to grow. By focusing on maximizing work to boost Hex rewards, they not only benefit themselves but also contribute to the network's development. This model can be likened to a decentralized franchise business, where NFT Hex holders act as franchisors, investing in and developing a specific region to generate their wealth.

The system can expand or contract to manage hundreds or thousands of areas, making it dynamic. It does not significantly fragment liquidity or diminish demand for the underlying $SKY token. The system incorporates decentralized market-driven information, creating a new avenue for token value growth beyond burn-and-mint mechanisms.

Boosting

SkyTrade designates specific geographical locations through Hex coordinates that will have their referral points multiplied by a booster multiplier. In the Boosting Region, all the parties who would typically get the reward for that action have their rewards multiplied by the “booster multiplier”.

For example, a specific Hex in Texas is designated as a Boosting Region with a multiplier of 3 for two weeks as it adds significant value to the network. If you refer someone who validly claims their air rights in that Hex, you and the owner of those air rights get the standard reward multiplied by 3.

Pre-TGE Hex Launch

Hexes will be released for participants. SkyTrade offers its community members exclusive access to Hexes before the official Hex release and the TGE. This early release is reserved for community members who have actively helped develop the network and earned SkyTrade points.

To participate early, community members must hold a limited edition SkyTrade NFT from the Genesis Collection, an early entry ticket to the early Hex release. A limited number of these NFTs will be minted. SkyTrade aims to recognize and reward its early community members who have played a significant role in shaping the air rights network by providing early access to valuable Hexes. This initiative also seeks to generate additional interest in SkyTrade and foster community among its members. Hexes will be made available to community members who do not hold the Genesis NFT, but this will be done after the Genesis NFT holders have had the opportunity to do so.

Our Discord server will issue additional details on how to take part.

*NFT Hexes are delegated to a specific region, such as a city, town, or neighbourhood, and the holder receives a share of the revenues generated in that Hex from their work, weighted proportionally to the length of time $SKY has been staked.

**This is not a token offering