SWIFTREWARDS: WHAT IS IT? AND HOW DOES IT WORK?!

The idea behind SwiftRewards is a way to not only help stabilize the price, but to also reward long-term holders, in case price depreciates. The more price depreciates, the more rewards would holders receive. If however price does not depreciate, there would be no airdrops on holders. Minimum required balance to be eligible for SwiftRewards will be 1,000 SWIFT, and any outgoing transaction from an address during any snapshot will disqualify that address, unless it’s a Proof-of-Stake transaction, or everything is returned to the address in the same transaction. In the latter, up to 0.005 SWIFT is covered for fees and if the transaction fee is greater than 0.005 SWIFT, it can be covered via an extra input from an address that is already disqualified. This is pretty useful if a SwiftNode owner wants to stake the rewards of their SwiftNode in one collateral. Last but not least, in order to filter zombie addresses, only addresses are rewarded that have had at least one valid transaction during the specified snapshot. This can happen automatically, in case the address stakes or has an active SwiftNode collateral during the snapshot. There will be 4 tiers for SwiftRewards:

Tier 1: Every 43,800 block - appx. 1 month
Tier 2: Every 131,400 block - appx. 3 months
Tier 3: Every 262,800 block - appx. 6 months
Tier 4: Every 525,600 block - appx. 12 months

As a result, there would be one possible airdrop each month, two possible airdrops every three months, three possible airdrops every six months and four possible airdrops every twelve months. As mentioned above, those who hold longer, would be rewarded more, if price depreciates; and the more price depreciates, the more rewards will be dropped on holders! These airdrops will be done by community ambassadors via a multisig address and the required funds and elected ambassadors will need to gain approval from stakeholders via a proposal. SwiftRewards will be a maximum of 4%, 3%, 2% and 1% of block rewards for tier 1, 2, 3 and 4 respectively - i.e. a total of 10% of our maximum block rewards.

For tier 1, each 1% drop in the average price from the start of the snapshot to the end, results in 0.08% of future block rewards being dropped on holders. First snapshot for each tier begins one snapshot late to make things fair to the future adopters. That means, first snapshot for tier 1 will start at block 43,800 while the first snapshot for tier 4 will start at block 525,600. To give an example, if the average price is recorded as 0.10 USD at block 43,800 and then becomes 0.075 USD by block 87,600, holders will receive 2% of the block rewards during that period. That is 25 times 0.08% due to 25% drop in the average price. Price drops of more than 50% will not affect the amount of airdrop, since maximum amount of available coins to airdrop will be reached.