COMPX Dynamics

Unit of Account
The COMPX token is a unit of account, used to settle the API revenue earnings in the appropriate proportions. It will be provided to:
  • Competition Sponsors;
  • The winning data scientists; and
  • A liquidity pool.
For each new competition, a unique COMPX Smart Contract and Token will be created / minted from the factory smart contract, to keep track of specific competitions and their models (i.e. COMPX A1 & COMPX B2).
Liquidity for BGR-COMPX(X) or any other pairings will not be provided by Bitgrit. Either these markets will be created by the community on decentralized networks like Uniswap V3 pools, or tokens can be traded privately, etc.
Competition Specific Ratio
For each BGR provided to a competition pool by Competition Sponsors, 1 COMPX token will be minted and issued (fixed supply). Each competition will differ depending on each competition’s unique circumstances, but Competition Sponsors will typically receive the majority share of COMPX tokens, and winning Data Scientists would receive a portion to ensure royalty like earnings, which incentivizes enhanced engagement from the Data Science community. An illustrated example of possible apportionments are as follows:
Example COMPX Allocation per BGR
Competition Sponsor
0.8 (80%)
To earn revenue share on winning models in return for the initial sponsorship.
Winning Data Scientists (Collective)
0.15 (15%)
To earn revenue share on their winning models they submitted. It incentivizes them to refine and update their models to keep earning revenue.
Liquidity Pool (Locked)
0.05 (5%)
To ensure that there is liquidity to trade COMPX tokens for BGR on a platform such as Uniswap V3 (concentrated liquidity pools).