# Eco-Reward Policy
## Eco-Reward
#### What is Eco-Reward, and why is it necessary?
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In the Eco-Reward system, users are rewarded with CALIUM as Participation Rewards.
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Motivating users through Participation Rewards is essential for the growth of the Eco-System. CALIVERSE is a metaverse platform with C2E (Create to Earn) as its main concept, and is a service model requiring active user participation in the Eco-System. CALIVERSE needed a well-designed system to motivate new user inflow and active Eco-System participation, and thus designed the Eco-Reward system.
The reward CALIUM distributed to users is divided into short-term cycle rewards (CALIUM Converter) and long-term cycle rewards (Resource Storage).
You can find the reasonable and stable Eco-Reward policy designed by CALIVERSE in the documents below.
## CALIUM Converter: Short-Term Eco-System reward
#### CALIUM Converter: Short-Term Eco-System reward
The CALIUM Converter is used as a means of short-term Eco-System rewards in CALIVERSE. In the CALIUM Converter, users can convert aetheron pods obtained in the metaverse into CALIUM for extraction.
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Users can obtain reward CALIUM using the CALIUM Converter.
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### Included Elements
The reward CALIUM from the CALIUM Converter includes the "Base Incentive Volume" and "10% of the Paid Issuance CALIUM." The Base Incentive Volume secures a minimum amount of reward CALIUM, and as actual Liquidity is injected and the Paid Issuance Volume of CALIUM increases, the reward CALIUM will also increase.
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### Base Incentive Volume
The Base Incentive Volume has been finalized, reflecting the CALIUM Issuance Volume per Epoch based on the quantity of the Standard Supply.
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### Total Volume
The reward CALIUM allocated to the CALIUM Converter will change by Epoch.
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### Acquisition
Users can obtain reward CALIUM by paying only a small fee through the CALIUM Converter.
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### Formula
\[Base Incentive Volume] + \[10% of the Paid Issuance Volume]
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In conclusion, the reward CALIUM issued from the CALIUM Converter will be used as immediate Participation Rewards in the Eco-System by summing \[Base Incentive Volume] + \[10% of the Paid Issuance Volume].
#### Conversion Efficiency
The value that determines the conversion efficiency of CALIUM in the CALIUM converter is finalized, and the details are as follows.
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※ If the calculated result is 0.5 or lower, it is set to a minimum of 0.5.
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#### Formula Explanation
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### Inflation Weight Adjustment
* As the Inflation Weight increases, Conversion Efficiency decreases.
* Since the cost of acquiring CALIUM increases, the acquisition cost of CALIUM through the reward-based CALIUM Converter also increases.
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### Adjustment Based on CALIUM Allocation in the CALIUM Converter
* If the actual allocated CALIUM volume in the CALIUM Converter for an Epoch exceeds the basic allocated volume, the Conversion Efficiency increases.
* As the CALIUM volume allocated as a reward has increased, the Conversion Efficiency is increased, which lowers the CALIUM acquisition cost in the CALIUM Converter.
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### Minimum Conversion Efficiency Guarantee
* If the Conversion Efficiency falls below 0.5, it is set to a minimum of 0.5 to maintain stability.
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#### Example
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* Inflation Weight = 1.2
* CALIUM Converter Actual Allocated CALIUM Volume per Epoch = 110% of CALIUM Converter Base Allocated CALIUM Volume per Epoch
→ 81% Conversion Efficiency applied
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Through this structure, the CALIUM Converter automatically adjusts conversion efficiency based on market liquidity and supply level, and servers to maintain the stability of CALIUM'S value.
## Resource Storage: Long-Term Eco-System reward
#### Resource Storage: Long-Term Eco-System reward
The Resource Storage serves as the long-term Eco-System reward for CALIVERSE and is used to store reward CALIUM from the metaverse.
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The reward CALIUM stored in the Resource Storage will be used as Content Rewards, which will act as motivation and encouragement for users, promoting Eco-System growth.
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The operating principle of the Resource Storage is as follows:
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### Storage
10% of the Sapphires spent by users will be the New Issuance as reward CALIUM and stored in the Resource Storage.
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### Utilization
The reward CALIUM stored in the Resource Storage will be utilized as Content Rewards.
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### Issuance
When users spend Sapphires, 10% of that amount will be the New Issuance as reward CALIUM.
* This applies when spending Sapphires in the CALIUM Exchange.
* It also applies to all cases of spending Sapphires in the CALIVERSE metaverse.
For CALIUM issued for payment in the CALIUM Exchange, any excess based on Inflation Weight will also be credited as reward CALIUM.
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### Formula
The formula applied in the Resource Storage is a+b, and the details are as follows:
* a = 10% of the Sapphire Spent in the CALIUM Exchange, applied with the Fixed Exchange Ratio
* b = 10% of the Sapphire Spent outside the CALIUM Exchange, applied with the Epoch-based Inflation Weight
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The stored reward CALIUM will be distributed more broadly in cycles, such as Participation Rewards for seasonal content in CALIVERSE, and will also be utilized for customer service rewards generated during operations.
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The total quantity of reward CALIUM stored in the Resource Storage and the quantity adjusted per Epoch will be recorded On-Chain and is available in [\[CALIUM On-Chain Information\]](/calium-eco-system/en/calium-on-chain-information.md#types-of-information-available).
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