# Bribes

The double token model of the Winalot Protocol incentive structure is designed to drive volume routed through the LPWAL, thus ensuring the LPWAL has steady revenue thanks to its mathematical edge. Players are incentivized to play through the games connected to the LPWAL as they are rewarded vWINR on each transaction.

To ensure WAL/vWAL has steady income and value, the LPWAL pays a portion of each input currency amount as bribes to the protocol on each transaction that starts a game, regardless of the outcome. This mechanism is called Bribes.

The bribes mechanism has a multiplier that changes in each epoch and ranges between 0.0075x (0.75%) of the input currency amount to 0.0125x (1.25%) of the input currency amount. The constant in each epoch depends on the revenue of the LPWAL to ensure it stays healthy.

For example, let's assume the bribe of the current epoch is 0.003x. A player performs a transaction with a value of 0.1 wETH. The LPWAL contract will be called to pay 0.0003 wETH as a bribe in the same transaction.

> The bribes mechanism can only be called through the transactions initiated by the game contracts.

#### Bribes Distribution <a href="#bribes-distribution" id="bribes-distribution"></a>

* 60% of the bribes collected are distributed to the WAL/vWAL staking pool
* 20% of the bribes collected are distributed to the buyback and burn address
* 20% of the bribes collected are distributed to the core developers

#### Staking <a href="#staking" id="staking"></a>

Bribes are routed to the Rewards contract in each transaction. The Rewards contract has a function that purchases LPWAL with the tokens accumulated in it and distributes it to the WAL/vWAL staking pool. Token holders with a staked position in this pool can claim their LPWAL tokens anytime. The LPWAL price continues accumulating as the tokens are now a part of the liquidity pool.

5% of the WAL supply is allocated as vWAL to reward the early staking program. The rewards contract mints vWAL to the staking pool proportionally to the annual percentage rate LPWAL generates to the staked WAL/vWAL principal.
