Prize Distribution

How Rewards Are Calculated and Paid Out

Understanding exactly how prizes are calculated, distributed, and what they're worth is essential for maximizing your crypto earnings on 8-Bit Arcade.

Distribution Overview

8-Bit Arcade has two prize distribution systems:

1. Daily Free Rewards

• FREE to earn (no entry fee)

• 50,000 8BIT distributed daily across all games

• Top 10 per game earn rewards

• Automatic payouts at 00:00 UTC

2. Tournament Prizes

• Paid entry required (2,000-50,000 8BIT)

• Larger prize pools (50K-500K 8BIT)

• Top finishers earn rewards (varies by tournament)

• Automatic payouts when tournament ends

Daily Rewards Distribution

Total Daily Pool: 50,000 8BIT

Distributed across all active games proportionally.

If there are 10 active games:

• Each game gets 5,000 8BIT per day

• Top 10 in each game split their game's pool

Example: Space Rocks Daily Pool = 5,000 8BIT

Rank	% Share	Reward Calculation	Daily 8BIT
1st	25%	5,000 × 25%	1,250
2nd	12.5%	5,000 × 12.5%	625
3rd	12.5%	5,000 × 12.5%	625
4th	12.5%	5,000 × 12.5%	625
5th	12.5%	5,000 × 12.5%	625
6th	5%	5,000 × 5%	250
7th	5%	5,000 × 5%	250
8th	5%	5,000 × 5%	250
9th	5%	5,000 × 5%	250
10th	5%	5,000 × 5%	250
TOTAL	100%		5,000

Per-Game Allocation

The 50,000 daily pool is split dynamically:

Formula:

Game Daily Pool = (50,000 / Number of Active Games) × Game Weight

Game Weight Factors:

• Popularity - More players = higher weight

• Difficulty - Harder games may get bonus weight

• Playtime - Games with more engagement

• Default - Equal split if no weighting applied

Initially: All games have equal weight (simple split)

Future: Community governance may adjust weights

Tournament Prize Distribution

Standard Weekly Example

Entry: 2,000 8BIT × 50 players = 100,000 8BIT collected

50/50 Split:

• 50,000 8BIT → Prize pool (50%)

• 50,000 8BIT → Burned (50%)

Prize Breakdown:

Rank	% of Pool	Calculation	Prize
1st	50%	50,000 × 50%	25,000 8BIT
2nd	25%	50,000 × 25%	12,500 8BIT
3rd	15%	50,000 × 15%	7,500 8BIT
4th	5%	50,000 × 5%	2,500 8BIT
5th	5%	50,000 × 5%	2,500 8BIT

High Roller Monthly Example

Entry: 50,000 8BIT × 100 players = 5,000,000 8BIT collected

50/50 Split:

• 2,500,000 8BIT → Prize pool (50%)

• 2,500,000 8BIT → Burned (50%)

Prize Breakdown (500K 8BIT Pool):

Rank	% of Pool	Calculation	Prize
1st	40%	500,000 × 40%	200,000 8BIT
2nd	20%	500,000 × 20%	100,000 8BIT
3rd	15%	500,000 × 15%	75,000 8BIT
4th	10%	500,000 × 10%	50,000 8BIT
5th	5%	500,000 × 5%	25,000 8BIT
6-20	10%	500,000 × 10% ÷ 15	3,333 8BIT each

Prize Value Calculations

Token Price Impact

Your prize value in USD depends on 8BIT token price:

Example: You win 200,000 8BIT (1st in High Roller Monthly)

Token Price	Market Cap	USD Value
$0.001626	$500K	$325
$0.00325	$1M	$650
$0.01626	$5M	$3,252
$0.0325	$10M	$6,500

Key Insight: Same 200K 8BIT win can be worth $325 or $6,500 depending on market conditions.

Calculating Your Potential Earnings

Daily Rewards (per game):

Daily Earnings = Rank Multiplier × Game Pool

Example:
- Rank #1 in Space Rocks
- Game pool = 5,000 8BIT
- Rank multiplier = 25%
- Daily earnings = 5,000 × 25% = 1,250 8BIT

Monthly Projection:

Monthly = Daily × 30 days

Example:
- Daily: 1,250 8BIT
- Monthly: 1,250 × 30 = 37,500 8BIT
- At $0.003 = $112.50/month
- At $0.0325 = $1,218/month

Tournament Winnings:

Prize = (Entry Fees × Participants × 50%) × Your %

Example (High Roller Monthly):
- Entry: 50,000 8BIT
- Participants: 100
- Total fees: 5,000,000 8BIT
- Prize pool: 2,500,000 8BIT (50%)
- Burned: 2,500,000 8BIT (50%)
- Your %: 40% (1st place)
- Your prize: 2,500,000 × 40% = 1,000,000 8BIT

Payout Mechanics

Smart Contract Automation

Daily Rewards Process:

1. [00:00 UTC] Daily reset trigger activated
2. Smart contract queries final rankings
3. For each game:
   - Identify top 10 players
   - Calculate reward amounts
   - Mint 8BIT tokens
4. Transfer tokens to winner wallets
5. Emit payout events on blockchain
6. Update user balances

Tournament Payouts Process:

1. Tournament end time reached
2. Final scores locked
3. Rankings determined (with tiebreakers)
4. Prize distribution calculated
5. 8BIT minted/transferred to winners
6. Payout confirmation emails sent
7. Results published

Transaction Verification

All payouts are:

• ✅ On-chain - Verifiable on Arbiscan

• ✅ Automatic - No manual processing

• ✅ Transparent - Public transaction history

• ✅ Immediate - Usually within minutes

Viewing Your Transactions

Check your payouts:

1. Visit Arbiscan.io

2. Enter your wallet address

3. View "Token Transfers"

4. See all 8BIT received

5. Click transaction for details

Or use platform:

1. Go to Profile → Rewards History

2. See all earnings with dates

3. Filter by type (daily/tournament)

4. Export CSV for records

Distribution Timeline

Daily Rewards

Time (UTC)	Event
23:55	5-minute warning (leaderboards lock soon)
00:00	Daily reset - rankings finalized
00:01	Smart contract calculates rewards
00:02	Tokens minted for winners
00:03	Payouts sent to wallets
00:05	Funds available in winner wallets
00:06	New leaderboard cycle begins

Total Time: ~5 minutes from reset to funds in wallet

Tournament Payouts

Phase	Duration
Tournament ends	Timestamp exact
Score validation	1-5 minutes
Ranking finalization	1-2 minutes
Prize calculation	1 minute
Payout execution	2-5 minutes
Total	5-15 minutes

Delays possible if:

• High network congestion

• Smart contract issues

• Unusual activity requiring review

Multi-Game Earnings

Aggregating Across Games

Example Player: Ranks in 3 games daily

Game	Rank	Daily 8BIT	Monthly 8BIT
Space Rocks	6th	250	7,500
Chomper	4th	625	18,750
Block Drop	8th	250	7,500
TOTAL	-	1,125	33,750

USD Value:

Market Cap	Token Price	Monthly USD
$1M	$0.00325	$109.69
$5M	$0.01626	$548.78
$10M	$0.0325	$1,096.88

Tournament + Daily Combined

Aggressive Player Strategy:

Daily rewards: 1,125 8BIT/day = 33,750/month Tournaments: Win 2× Standard ($5 entry) = 40,000 8BIT Monthly Total: 73,750 8BIT

At $10M market cap: $2,396/month just from gaming! 🔥

Prize Pool Guarantees

Guaranteed vs. Variable Pools

Daily Rewards: GUARANTEED

• Always 50,000 8BIT per day

• Never changes based on participation

• Funded by emissions pool

• Sustainable for 5 years

Tournaments: MOSTLY VARIABLE

• Prize pool = 50% of entry fees collected

• More players = larger prizes

• Less players = smaller prizes

Some Tournaments: GUARANTEED MINIMUM

• Platform may add extra 8BIT

• Ensures attractive prizes

• Usually for special events

• Announced beforehand

Fee Breakdown

Where Tournament Entry Fees Go

Example: $10 Entry Fee

$10.00  Total Entry Fee
├─ $5.00 (50%) → Prize Pool
│  └─ Swapped to 8BIT
│     └─ Distributed to winners
│
└─ $5.00 (50%) → Buyback & Burn
   └─ Swapped to 8BIT on Uniswap
      └─ Sent to burn address (destroyed)

Benefits:

• 50% directly benefits players (prize pool)

• 50% benefits all holders (deflationary)

• Creates constant buy pressure

• Reduces circulating supply

No Hidden Fees

What you pay:

• Entry fee (e.g. $10)

• Gas fee (~$0.20)

• Total: ~$10.20

What you DON'T pay:

• ❌ Platform fees

• ❌ Withdrawal fees

• ❌ Claiming fees

• ❌ Service charges

Tax Considerations

⚠️ Not tax advice. Consult a tax professional.

Prize Income

In most jurisdictions, crypto prizes are taxable:

Daily rewards:

• May be considered ordinary income

• Taxable at fair market value when received

• Track USD value on receipt date

Tournament winnings:

• May be considered gambling/contest income

• Taxable at fair market value

• May have different reporting requirements

Record Keeping

Keep records of:

• Date of each payout

• Amount of 8BIT received

• USD value at time of receipt

• Purpose (daily reward, tournament win)

• Gas fees paid

Export from platform:

1. Profile → Rewards History

2. Click "Export CSV"

3. Save for tax records

4. Provide to accountant

Transparency & Verification

Public Blockchain Records

Everything is verifiable:

1. Smart Contract Code

   • View on Arbiscan

   • See exactly how distributions work

   • Verify no backdoors or tricks

2. Distribution Events

   • All payouts emit blockchain events

   • Anyone can verify amounts

   • Cannot be faked or manipulated

3. Token Minting

   • See when new tokens minted

   • Verify amounts match emissions schedule

   • Track total supply in real-time

Community Oversight

Verification tools:

• 8bitarcade.games/transparency - Official dashboard

• Arbiscan.io - Blockchain explorer

• Dune Analytics - Community dashboards

Frequently Asked Questions

Q: When do I receive my daily rewards? A: Automatically within 5 minutes of daily reset (00:00 UTC).

Q: Do I need to claim rewards manually? A: No, all payouts are automatic. Tokens sent directly to your wallet.

Q: What if I rank top 10 in multiple games? A: You earn rewards from EACH game. No limit!

Q: Can tournament prizes run out? A: No. Prizes funded by entry fees, which fund the prizes.

Q: What happens if a tournament has no winners? A: Not possible - prizes always go to top finishers.

Q: Are prizes subject to change? A: Daily reward structure is fixed. Tournament prizes depend on participation.

Q: Can I choose to receive prizes in USDC instead of 8BIT? A: No, all prizes are paid in 8BIT. You can swap to USDC after receiving.

Q: Do I pay gas fees to receive prizes? A: No, recipients don't pay gas. Platform covers payout costs.

Next Steps

• Daily Rewards - Earn free crypto daily

• Tournaments - Compete for big prizes

• Claiming Your Rewards - How to access your winnings

• Market Scenarios - Prize value projections

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All prize distributions are automated via smart contracts and publicly verifiable on the Arbitrum blockchain.