Reward source and allocation

Profits may occur due to various activities. Below are some of the major instances of reward generation.

· NFT Sale – RADA NFT Type 1 (5 types of each player), Type 3 (Ambassador), and Type 4 (Funding) can be purchased by participating in a draw that consumes RADA tokens of participants.

· Club management – In the case of the first DAO project, the operation of a football club, profit may be generated when the club has (i)won a league Cup or tournament Cup (ii)been promoted to the upper league, (iii)made profit from transfer fee of players (iv)has generated other profits such as season ticket sales

· Player contents – As the Foundation takes rights to create and sell player content for marketing and PR purposes, player content would be one of the major profit resources

· DAO operation – DAO operation is an inclusive term used to state any profit generated as the RADA DAO is actively operated. Token holders’ consumption of the RADA tokens to participate in voting is a typical example of profit from the operation of the DAO.

· Entertainment – When concluding a contract with a player, the Foundation includes a clause that a certain percentage of profit from the entertainment business (i.e., advertisement model) is assigned to the Foundation. (Ratio may differ per each contract)

· Additional activities – Profit from potential activities performed by contracted players or the DAO project

The RADA Foundation plans to allocate profit generated as below.

· The Foundation takes 50% of the total profit occurred, out of which 80% is reused for operation. The remaining 20% is allocated to the core team of the Foundation as a reward for management. Profit allocated for the Foundation can be sold or purchased in RADA on cryptocurrency exchanges.

· Another 50% of the total profit is allocated to the token holders

Type of rewards

1. Reward with RADA tokens

· If any submitted proposal is accepted as a voting agenda by the DAO

· If the submitted proposal is passed through voting in the DAO

· If a proposed funding NFT is accepted and the funding is successfully done

· If any recommended player is selected as a RADA player of the RADA program

· Weekly reward if participated in the DAO community every day

· In quarterly awards ceremonies (i.e., best attendee, best fundraiser, etc.)

· If won in the game league (individual match and team match in global server) every month

2. Reward is given as voting power (weight in voting)

As stated in the section, ‘RADA NFT’, NFTs are categorized into four, and each NFT has different rarity in draw or purchase. The rarity and number of NFTs that one holds activate as a reward for voting power. The voting weight will increase as the rarity and number of NFTs increase. The table below describes the level of voting power and its voting weight. If a voter who holds NFTs equivalent to the Lv1 (5 types of the same RADA (unique+rare+uncommon)) votes with 10 RADA tokens, then the voting weight becomes quadruple, resulting in voting with 40 RADA tokens.

3. Reward as a voter for special votes

· Only those who hold Ambassador NFTs are given the rights to vote for special votes