Methodology reference, version 1 (2026-09-29)

Reward formulas

Methodology reference, version 1 (2026-09-29). This reference sits outside the main reading path; the chapters keep the practical eligibility, assumptions and payout explanations. It gives the allocation methods behind the examples. Inputs must come from verified records, and the claim systems must implement the same rules. Displayed rounding is not used to calculate payments.

Tournament 1 $FUEGO pools

The T1 $FUEGO budgets

Rounded for reading. Calculations keep the complete budget precision.

T1 pool budgets
Pool	$FUEGO
Account placement	410,220.22
Registered Fuegos	136,740.07
Delegation	425,413.56
Total	972,373.86

Registered Fuegos receive 25% of the Trader budget; account placement receives 75%. Delegation has a separate budget. A pool with no eligible recipients stays unallocated, and rounding leftovers are not additional prizes.

$LIT prizes

L is the pool: 560 for an ordinary tournament or 2,800 for the Season Championship. S is the number of paid slots: ten or twenty. L_raw expresses the pool in the LIT asset's smallest verified unit.

z(r) = 85^{r − 1} × 100^{S − r}

Prize(r) = floor(L_raw × z(r) ÷ sum(z))

The denominator includes all S slots. Only eligible occupied ranks are paid. Unused slots and rounding leftovers remain in reserve. In these formulas, floor means rounding down to the whole unit being calculated.

Trader placement $FUEGO

A is the placement budget in raw token units. N is the complete qualifying ranked field, R = min(N, 50) and K = min(3, R). An empty field receives no allocation.

P = floor(0.10 × A)

z(r) = 97^{r − 1} × 100^{R − r}

Placement(r) = floor((A − P) × z(r) ÷ sum(z)) + podium(r)

podium(r) = floor(P × w(r) ÷ (w(1) + … + w(K))) for r ≤ K, with w(1) = 50, w(2) = 30 and w(3) = 20

For ranks above K, podium(r) is zero. With three or more eligible ranks the podium bonus is 50%, 30% and 20% of P. With two eligible ranks the weights re-normalize to 50/80 and 30/80; with one, first place receives all of P. The podium bonus is included in A, not added to the budget, and the unallocated remainder from flooring stays in reserve.

Registered-Fuego and delegation $FUEGO

W = 10^18, the scale used for exact token calculations. For N > 1, rank r sets the performance factor:

p(r,N) = 1.3W − floor(0.5W × (r − 1) ÷ (N − 1))

countWeight(n) = floorFourthRoot(n³ × W⁴)

groupWeight = floor(countWeight(n) × p(r,N) ÷ W)

For N = 1, p = 0.8W. Registered rewards divide their pool only among eligible top-50 groups, while the performance factor uses the complete N. Delegation divides its separate pool among every qualifying backed group.

Beneficiary reward = floor(pool × sum(group weight ÷ total weight × beneficiary NFTs ÷ group NFTs))

Combine the beneficiary's exact shares within each reward component before the final raw-unit floor. Do not add already rounded screen amounts. Account-selection and eligibility checks are still required; the formula does not determine whether accounts belong to different operators.

HEAT rewards

H(r) = 100 × floor(50 × 97^{r − 1} ÷ 100^{r − 1})

Backer placement = floor(H(r) × W × beneficiary NFTs ÷ group NFTs)

T1 placement ends at rank 50. Multiply the original floored rank award by 100. Trader and Backer placement pools are separate. Activity HEAT adds 100 per qualifying Trader beneficiary wallet and 100 per qualifying Backer NFT. Combine exact shares for the same beneficiary before rounding.

Tournament ROI

Event PnL = ending equity − starting equity − net effective external capital flows

Denominator = starting equity + max(0, peak cumulative net effective external inflow)

ROI% = 100 × event PnL ÷ denominator

Boundary equity includes open positions. A nonpositive or unsupported denominator cannot produce a valid official score. Fees and funding must be counted consistently: do not deduct a withdrawal fee twice or count an internal transfer as both profit and new capital. Final scoring rules and complete histories are required.

Later-season $FUEGO allowances

r is the finalized burn-to-mint ratio, capped at 1, or zero if no tokens were minted during the interval. g is qualifying growth limited to −1 through 1, or zero without a valid nonzero previous baseline.

M = clamp(1 + r − 0.10 + 0.20 × g, 0.70, 1.30)

Next allowance = min(remaining lifetime capacity, next base × M)

Clamp limits M to the stated range. Season 1 uses M = 1. Use actual mints and burns, not allocated budgets. The defined integer floors apply; missing evidence is not treated as zero activity.

Vault distributions

Allocation = floor(net asset raw units × eligible weight-seconds ÷ total eligible weight-seconds)

Use the distributed asset's own precision and the net amount received. Weight-seconds account for eligibility and upgrades during the period. Without eligible weight, the assets remain in, or return to, the appropriate pending fund.

The economy in short

More Fuegos give you more Vaults to develop and more NFTs to register or delegate. $FUEGO pays for activation, upgrades, minting and eligible NFT exchanges. HEAT rewards activity with access to eligible Forge recipes. Qualifying protocol income buys $LIT for activated Vaults. These benefits depend on real participation, funded distributions and features opening with their published conditions.

Calculation details. The chapter links return to the guide.