There are a total of 21 million ConvoCoins that can ever be created. Every day, 2,100 ConvoCoins will be distributed within a few minutes of midnight UTC (around 4:00 P.M. PST or 7:00 P.M. EST), and distribution will continue for 10,000 days (around 27 years) until all 21 million ConvoCoins are in circulation. Coins were first distributed on Thursday, December 17, 2020 at midnight UTC (as part of what is known as the genesis distribution), and they will be last distributed on Sunday, May 3rd, 2048 at midnight UTC.
The first 100 ConvoCoins go to the developers. This is not just a reward to the developers for creating ConvoCoin, but these 100 daily ConvoCoins will go towards funding other ConvoCoin-related projects and paying fees to allow users to withdraw from their chat platform wallets to a blockchain wallet.
Of the 2,000 ConvoCoins left to be distributed, 1,000 ConvoCoins will be distributed proportionally to the level of activity of each user (as recorded by the ConvoCoin bot). Every time a user types a message on a chat platform with the ConvoCoin bot, the system will award XP to the user under the conditions that the user cannot receive XP more than once per minute and the message sent passes our spam filter. The amount of XP is a random number between 25 and 50, and there is a 0.01% chance that the user will receive double the XP randomly generated. Additionally, users can earn more XP by playing games through the ConvoCoin bot. At the end of the day, the system will distribute 1,000 ConvoCoins proportionally based on XP. The distributed coins are rounded down to 8 decimals, as that is the smallest denomination of ConvoCoins. If there are left over coins not included in the distribution, or if nobody had more than 0 XP (in which case no coins are distributed to users), remaining coins are given to the developers.
The final 1,000 coins are distributed based on a lottery-type system. 10 winners will receive 100 ConvoCoins each. If a user has more than 0 XP, they automatically get 1 ticket per 500 XP (rounded up) and have a maximum of 10 tickets. Then, 10 tickets are drawn randomly from all the tickets from the day, and 100 ConvoCoins are distributed to each of the 10 winners. If nobody had more than 0 XP, remaining coins are given to the developers.
Users will be notified over their chat platforms through a direct message when they receive a proportional distribution, and users are congratulated over a direct message if they win the lottery. Users can then check their balance and transfer their coins with commands specified by the ConvoCoin bot on the chat platform.
For more expert-level details on how the distribution system works, please see our whitepaper.