Introducing Wingbits Tokenomics 2.0

Over the past few months, we've identified opportunities to greatly improve our rewards system. While effective in many ways, the previous model created some incentive imbalances.

We set out to achieve three key objectives: 

1. Reward our early participants, ensuring they’re still correctly compensated for being early. 

2. Value quality everywhere, so great providers are rewarded regardless of location or network saturation. 

3. Ensure broad participation by balancing rewards so that a large portion of our community finds involvement in the network worthwhile.

The new Wingbits tokenomics achieves all three of these goals while future-proofing the network for years to come by simplifying the reward system.

Previously, the reward formula was structured around four reward buckets.

1. Daily base reward

2. Daily performance reward

3. Early participant reward - base

4. Early participant reward - bonus

This system was complex and disproportionately favored the top five performers, resulting in a skewed distribution.

In the updated reward formula, we're simplifying the structure by consolidating it into two reward buckets: 

These rewards are calculated using the PageRank algorithm – the same technology that was created to power Google's search rankings. 

This new system replaces both components of the old system: the base rewards (which distributed tokens proportionally based on contributions to each hex) and the bonus rewards (which were shared only among the top five contributors in each hex). 

Network Score Rewards determines each station's value based on its data quality relative to nearby stations, ensuring providers in saturated areas still receive fair rewards while maintaining strong incentives for being first in a new location.

These rewards are now distributed based on the number of hexagons you cover, allowing stations – even in crowded areas – to earn more rewards the sooner they join.

This approach works in the following way:

Early Participant Rewards are distributed over 5 years, with a 10% annual reduction, meaning users earn more the earlier they join. 

Additionally, these rewards are allocated based on the number of hexagons you cover, regardless of competition. This approach ensures that even stations in saturated areas receive rewards that better reflect their performance.

We're optimizing the $WINGS distribution timeline to better support network growth. The updated plan for the initial tokens allocated to station rewards now follows a 20-year distribution timeline instead of the original 40 years.

The initial 4 billion tokens will be allocated to a designated "Growth Stage" for the first 8 years, featuring accelerated distribution. Any unclaimed tokens from this phase will be distributed over the following 12 years, transitioning into a 'Steady Phase' with a more sustainable distribution model

We'll implement initial high buyback and burn rates during this time, gradually transitioning to a buyback and redistribution model in the later phase. 

It's important to note that while the initial token distribution ends after 20 years, the buyback and redistribution ensure the network remains sustainable beyond this timeframe  

Our simulations show a significantly fairer distribution of rewards across the network with the new model – more contributors benefit meaningfully from their participation:

Let's break down how the $WINGS token supply will be distributed to support long-term network growth:

Total $WINGS Supply: 10 billion tokens allocated as follows:

1. 40% (4B): Station Rewards (3B Network Score Rewards +1B Early Participant Rewards)

2. 24.5% (2.45B): Capital partners (with 1.5-year vesting)

3. 24.5% (2.45B): Company & Team (with 2-year vesting)

4. 11% (1.1B): Ecosystem (partnerships, marketing, community initiatives)

Token Flow

When customers purchase flight data, the revenue is divided three ways:

1. 25% covers operational cost (approximately)

2. 50% goes to buying back and burning tokens (eventually transitioning to redistribution)

3. 25% goes to the Wingbits treasury

We aim to introduce several additional benefits for participants, including staking multipliers for token holders, platform purchases using $WINGS, exclusive holder-level perks, and a buy-back and burn program funded by data sales.

Whether you're a current provider or considering joining Wingbits, these changes ensure your contributions are valued appropriately. If you're a quality contributor, your rewards will properly reflect your value to the network. 

Early joiners still receive outsized benefits in the form of Early Participant Rewards.

Those in crowded areas will now find that the PageRank algorithm recognizes their unique contributions despite the comparatively crowded nature of their locale. 

The result is that anyone running a well-installed and optimized station will benefit from this enhanced performance-based rewards system.

Naturally, while the goal of this upgrade is to improve fairness, Wingbits remains a performance-based network. 

The highest rewards in each area will primarily go to those with properly installed and high-performing stations. 

Although this new model represents a significant improvement, we anticipate minor adjustments as the network evolves. 

Additional bonus structures like low altitude incentives, geographic bounties, and other specialized rewards are still on our roadmap. These refinements will help us address specific network needs while continuing to reward contributors who help us capture the most valuable data.

Ready to be part of the next generation of global flight tracking?

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Participating in Wingbits means you're not just earning rewards – you're helping build the world's most comprehensive and accurate flight tracking network.

There’s never been a better time to earn your $WINGS.