Long-term Holders Seasons 1&2 Regulations and Details

Long-term holders season 1, or LTH Season 1 for short, squeezed out massive and positive feedback from our community; you guys! We’re fortunate to have such strongly invested CROWDers both in us and in holding the CROWD token.

Such heartwarming reactions from you sealed the deal on not only continuing LTH Season 1 but pairing it up with another likewise project called the “Long-term Holders Season 2.”

Consequently, for more clarity over the both seasons, we decided to device a clean and straightforward regulation set. In this long-tailed post, you can get your hands on every little LTH Season 1&2 thoroughly unwrapped and explained to the last interaction.

Calculating the winning points.

- Step 1: Determination of the sweepstake period and evaluation time.
- Step 2: Determination of the eligible wallet networks
- Step 3: Calculation of the wallet balances in the wallet network
- Definition: “CROWD Profit Token Package (ProToPack)”.
- Step 4: Determination of the winning points

The Seasons.

## Abstract

### Who wins?

The investors who hold or have held CROWD the longest and most consistently in winning game period are to be determined. The following factors will be taken into account:

- Only CROWD that are still in the wallets at the time of the evaluation are included in the evaluation. Sales are not included in the evaluation.
- Periods of continuous ownership up to the evaluation period of CROWD. Long possession is better than short.
- Time of purchase: Early investments that are still in the wallet today are scored higher than later ones.
- The volume of continuous ownership is taken into account. More continuous ownership is better than less.

### What’s new in LTH II?

- The winning periods are adapted.
- Earning winning points is only possible in this periods. More information is provided below.

- There are
**two winning Seasons**in this game- Seasons I: you owned or have owned CROWD before the game period starts

- Seasons II: you purchased CROWD after the game period starts

### Conditions of participation

Participation is allowed for anyone

- who has at least 10,000 CROWD on his connected wallet(s) at the time of the evaluation. The definition of connected wallets can be found below.
- who is not or was not an Advisor at CrowdSwap
- whose last transaction in the wallet network was not a SELL (only BUY and SELL are considered)
- who is not an employee of the CrowdSwap project

## Definitions

### Crowd “held” or “not held”

- The following transactions are considered to be CROWD “held”:
- CROWD in the wallet
- CROWD in Staking
- CROWD transfers to other wallets
- CROWD Liqui-Mining,
**only if no CROWD had to be sold**to enter Liqui-Mining

- The following transactions are
**not**considered CROWD “held”:- CROWD swap into other non-CROWD tokens
- Investing in Liqui-Mining by only CROWD (because half of the CROWD are swapped in background)

### Connected wallets / Wallet network

Two wallets are considered “**connected**” if a transaction into CROWD has taken place between them. The assumption is that when CROWD is transferred from one wallet to another, both are owned by the same investor. We then speak of a “**wallet network**“. This can consist of 1 to n wallets.

*Example: We consider the wallets A, B and C*

*On Wallet A 1,000 CROWD are acquired.**From wallet A 500 CROWD are transferred to wallet B. Thus, wallets A and B are***connected**. A and B now form a**wallet network**.*2,000 CROWD are now purchased on Wallet C.**500 CROWD are transferred from Wallet C to Wallet A. Wallet A and C are now connected. Since Wallet A was already in a wallet network with B, C is now added to this account group (since A and C are connected). The new account network is now A, B and C and so on.*

## Calculating the winning points

### Step 1: Determination of the sweepstake period and evaluation time

The sweepstake period is from 21 February 2023 to “Bitcoin Halving 2024”. Precise date of the bitcoin halving will be determinated in future

The sweepstakes period will be divided into 3 “winning periods”.

- “LTH I CROWD Masters”:
- All before 21 February 2023

- irrelevant in collection winning points. Only your wallet balance at the end of this period ist considered as your “capital at start”.

- “CROWD Knights”:
- all
**BUYs and all SELLs**will affect winning point calculation.

- all
- “CROWD Padawans”:
- from 21 January 2024 up to Bitcoin Halving 2024
- all
**SELLs**will affect winning point calculation.

### Step 2: Determination of the eligible wallet networks

- First, ALL wallets are determined that have CROWD in the wallet, stake or liqui mining at the time of evaluation.
- It is determined between which of these wallets CROWD was transferred directly. Wallets between which a transaction was carried out are combined to form a wallet group.
- Wallet groups that contain wallets of an advisor or CROWD project employee are not taken into account.
- The last buy and sell transactions in the wallet network are determined. In case the transaction last executed is a SELL, the wallet network is not being taken into consideration for the competition.
- If this is a sale, the wallet network is no longer taken into account.

- The sum of all CROWD in a wallet network is determined (CROWD in the wallets, in the stake or in the liquidation). If this sum is < 10,000 CROWD, the wallet network is no longer taken into account.

All remaining wallet networks take part in the lottery.

### Step 3: Calculation of the wallet balances in the wallet network

For each wallet network, the CROWD volumes of all contained wallets of each day in the lottery period are added up to the time of 0:00 GMT.

Hint I: Balance History of wallet networks starts at the period “CROWD Knights” at 21. February 2023. If you purchased and held CROWD in “LTH I CROWD Masters” period, this will be your “capital at start”

Hint II: Yields from LTH I will not be considered to balance history.

Example (for the period 01 Feb 2023 to 20 March 2023)

Date | Wallet A | Wallet B | Wallet C | Balance History |

1 February 2023 | 200 | 50 | 40.000 | 0 |

10 February 2023 | 150 | 50 | 100 | 0 |

21 February 2023 | 150 | 50 | 100 | (LTH II starts here) 300 |

3 March 2023 | 100 | 200 | 300 | 600 |

4 March 2023 | 100 | 300 | 200 | 600 |

20 March 2023 | 0 | 400 | 100 | 500 |

#### Limitations to calculation of network balances

All CROWD considered in networks are calculated as follows:

- Increase of balance by
- Purchase CROWD from swaps

- Purchase CROWD from vesting

- Purchase CROWD from competitions

- No effect on balance has
- stakingunstakingproviding to Liqui-Pools, without selling CROWDwithdrawing any rewards

- Transfer CROWD

- Decrease of balance by
- Sell CROWD (Swap)

- providing to Liqui-Pools with only CROWD (the CROWD swapped in background will decrease the balance)

*Example*

Action | # CROWD | Balance | eligible |

Buy | 10.000 | 10.000 | yes |

Stake | 8.000 | 10.000 | yes |

Buy | 1.000 | 11.000 | yes |

Withdraw Stake Rewards | 500 | 11.000 | yes |

Sell | 500 | 10.500 | no |

Buy | 10.500 | 21.000 | yes |

Provide Liquimining (USDC/CROWD) | 5.000 | 21.000 | yes |

Withdraw Mining Rewards | 800 | 21.000 | yes |

Leave Liquimining (USDC/CROWD) | 5.000 | 21.000 | yes |

Provide Liquimining (Single-CROWD) | 5.000 | 18.500 | no |

Buy | 2.000 | 20.500 | yes |

From these the winning points are calculated, as follows. We need this definition as well.

### Definition: “CROWD Profit Token Package (ProToPack)”.

A “CROWD ProToPack“ is a set of tokens that has been held for a constant period of time and remained in the wallet until the evaluation time. Here it is not important whether it is the identical tokens, but only the identical quantity. Sold tokens can therefore not come into the evaluation. A ProToPack consists of the following four details:

- V
_{CROWD}- Quantity of CROWD tokens

- T
_{ALL}- Amount of time V
_{CROWD}held

- Amount of time V
- T
_{PADAWAN}- Part of T
_{ALL}spent in the period “Padawan”

- Part of T
- T
_{KNIGHT}- Part of T
_{ALL}, spent in the period “Knight”

- Part of T
- Summary:
- ProToPack = [V
_{CROWD}, T_{PADAWAN}, T_{KNIGHT}], where T_{ALL}= T_{PADAWAN}+ T_{KNIGHT}

- ProToPack = [V

Example:

action | # CROWD | balance | Eligible to win after action |

Purchase CROWD | 10.000 | 10.000 | no |

Stake | 8.000 | 10.000 | yes |

Purchase CROWD | 1.000 | 11.000 | yes |

Withdraw Stake Rewards | 500 | 11.000 | yes |

Sell | 500 | 10.500 | no |

Purchase CROWD | 10.500 | 21.000 | yes |

Liquimining (USDC/CROWD) | 5.000 | 21.000 | yes |

Withdraw Mining Rewards | 800 | 21.000 | yes |

Leave Liquimining (USDC/CROWD) | 5.000 | 21.000 | yes |

Liquimining (Single-CROWD) | 5.000 | 18.500 | no |

Purchase CROWD | 2.000 | 20.500 | yes |

#### Example for the determination of the token CROWD ProToPack

The following example will explain the properties of a ProToPack in more detail. Let’s look at a wallet network over the evaluation time and the associated balances (across the whole wallet network) for CROWD tokens held. The timeline only depicts moments with changes to the amount of CROWD tokens held.

Assume: Bitcoin Halving 2024 will happen at 14 March 2024

Here, we iteratively search for the packets that were held continuously and maximally. This implies the following:

Once the wallet group had holdings of 0, all held CROWD before balance 0 are no longer considered. All held tokens before the last state 0 are irrelevant for the evaluation as those were not in the wallet network consistently.

Thus, we take all tokens left of balance 0 including the zero stands out of valuation.

Let us consider the remaining period 28 July 2023 up to and including 12 March 2024.

The package with the longest time in the wallet can have the volume that is currently held in the wallet at most.

- The package with the longest time in the wallet can only have the volume of the minimum balance in the remaining time periods.

Thus, the first packet is the ProToPack No.1 shown below. Its values are:

V_{CROWD }= 4000

T_{KNIGHT }= 176 days (from 28. July 2023 until 20. January 2024)

T_{PADAWAN} = 53 days (from 21. January 2024 until 14. March 2024)

T_{ALL} = 229 days

All tokens from 28 July 2023 have been taken into account, as the total of 4,000 tokens has been in the wallet network consistently. We continue analogously on the timeline creating further ProToPacks according to the following buy orders. All tokens which have already been used for the competition, will not be taken into consideration in following ProToPacks.

In our example, the next ProToPack II would have the following details:

V_{CROWD }= 5,000 (total of 9,000 minus the 4,000 already used in ProToPack I)

T_{KNIGHT }= 112 days (from 30. September 2023 up to and including 20. January 2024)

T_{PADAWAN} = 53 days (from 21. January 2024 up to and including 14. March 2024)

T_{ALL} = 165 days

The tokens which were transferred to the wallet network on 24 January 2024 cannot be associated with a ProToPack, as they had not been in the wallet network until evaluation took place (they were sold on 2 February 2024).

The last ProToPack III would consist of the tokens of 12 March 2024 with the following details:

V_{CROWD }= 4,000 (13,000 minus 9,000 already used in ProToPack I and II)

T_{PADAWAN} = 2 days (from 12 March 2024 up to and including 14 March 2024)

T_{KNIGHT }= 0 days

T_{ALL} = 3 days

### Step 4: Determination of the winning points

- Determine “capital at start” from “LTH-I-Masters” period
- The ProToPack points of each wallet are determined.
- The evaluation function described below is applied to all ProToPacks and results in the winning points.
- The sum of all winning points of a wallet group is used for the evaluation in the lottery.
- A ProToPack cannot provide negative winning points. Lowest possible winning points per ProToPack is zero.

#### The valuation function

Assuming that a ProToPack := [V_{CROWD}, T_{PADAWAN}, T_{KNIGHT}] and T_{ALL}:= T_{PADAWAN}+ T_{KNIGHT}, where T is calculated in days.

#### Calculation of the “base profit points”

Since both the volume and the holding period are considered according to the profit conditions, the base winning points are calculated by multiplying the volume by the holding period in the respective profit zones. The following applies to the profit zones

- Padawan: Holding periods in “Padawan” do
**not**result in profit points. Short-term purchases are thus not included in the valuation.- Base profit points_Padawan = 0 (const.)

- Knight: In this range volumes are multiplied by holding time
- Base profit points_Knight = V
_{CROWD}* T_{KNIGHT}

- Base profit points_Knight = V
- LTH-I-CROWD Masters:
- Does not affect winning points

#### Calculation of “bonus profit points”:

In addition to the base profit points, bonus profit points are distributed based on a bonus function. The bonus function has the task of rewarding early investors who remained loyal to CROWD over those who joined later.

The bonus function multiplies the base profit points again by a factor, which is measured by how large T_{ALL} is.

The larger T_{ALL}, the larger the bonus.

#### Calculation of the total “winning points”:

With this the calculation of the total profit points is done

Winning points = (Base winning points_Knight) * Bonus factor(T_{ALL})

#### The bonus function

As a bonus function is based on the Fibonacci sequence, starting with the Fibonacci number F_{2}.

| F_{2} | F_{3} | F_{4} | F_{5} | F_{6} | F_{7} | F_{8} | F_{9} | F_{10} | F_{11} | F_{12} | F_{13} | F_{14} | F_{15} |

Days after 21 Feb 2023 | 1 | 2 | 3 | 5 | 8 | 13 | 21 | 34 | 55 | 89 | 144 | 233 | 377 | 610 |

Gewinn-Faktor | 1 | 1 | 1 | 1 | 1 | 1 | 0.95 | 0.9 | 0.85 | 0.8 | 0.75 | 0.7 | 0.65 | 0.6 |

The profit factor is now calculated as follows:

Calculate the number of days in the lottery period minus T_{ALL}. The win factor can then be read in the table above. The next smaller Fibonacci number always applies to the result.

Example: There are 370 days in the lottery period, T_{ALL} = 200. This results in 370-200 = 170. The next smaller Fibonacci number is F_{12} (144). Thus the factor is 0.75.

## The Seasons

There will be two winning Seasons:

- Season I: You purchased any CROWD before 21. February 2023
- Season II: You purchased any CROWD after or at 21. February 2023