⚔️Introduction

In the last few years, the Cryptocurrency market has swept over the world like a storm. Month after month, news from the Crypto World made headlines in financial markets all over the world. It's clear that Cryptocurrency is here to stay. Several models have been proposed for rewarding members for their participation in a coin's growth and development. In the early days of Cryptocurrency, Proof of Work (POW) was the popular model of choice.

Bitcoin operates on the "Proof of Work" model. With the sudden boom and adoption of bitcoin on a large scale, the flaw of this model didn't take long to reveal itself as mining difficulty kept increasing exponentially. As a result, it required more computing power and energy virtually making it an unsustainable system.

The "Proof of Stake" model proved to be more successful as it requires a lot less energy to operate. Members simply lock a portion of their coins in order to validate blocks and get a reward. This model proved to be so energy efficient that Ethereum migrated from the "Proof of Work" model to the "Proof of Stake" (POS) model with its launch of the Beacon Chain in December 2020.

Rewards in the Proof of Stake networks usually start with a very high Annual Percentage Yield (APY) which over time dwindles down as more and more members stake their coins as validators of that network. This model earns members coins for doing nothing other than leaving their coins locked in a contract. Earnings in this model cannot be anymore that the percentage the contract specifies regardless of member participation.

Pirate Booty Coin is a different approach toward APY distribution by attempting to revolutionalize the current APY system. Pirate Booty DAO aims to add fun to the traditional APY earning system by fostering and rewarding competition, lossless gambling, and member participation.

This approach ensures daily returns are not fixed at a certain rate. Members that participate in the ecosystem stand to earn more than members that don't. A distinct advantage from the traditional Proof of Stake model.

The Rewards Model has been designed to be sustainable such that the Rewards wallet never runs dry. Upon their respective launch, fees earned from the marketplace and launchpad activities will be used to replenish the rewards wallet with $BOOTY coins.