---
# System prepended metadata

title: Creator economic v0

---

# Creator economy

Now we just have the alpha version of Snowball.
The Creator DAO function is not ready yet.

The vaule flow now has two part:

- Direct to Creator
- Share Vault

And there are two parameters in this economic model

- share vault ratio
- share dilute ratio

All the parameter can be set by creator when create vault

### Value Flow

1. **Direct to Creator**: This is the portion of the support that goes directly to the content creator. It is calculated as a percentage of the total support amount. The formula for this is:

$$
\text{amount_direct_to_creator} = \text{support_amount} \times (1 - \text{share_pool_ratio})\
$$

2. **Share Vault**: This is a pool where a portion of the support amount is stored. The shares from this pool get diluted, and the value is distributed among all shareholders. The formula to calculate the amount going into the Share Vault is:

$$
\text{amount_to_share_pool} = \text{support_amount} \times \text{share_pool_ratio}\
$$

### Parameters

1. **Share Pool Ratio**: This parameter defines the proportion of the total support amount that will go into the Share Vault. It ranges from 0 to 100, where 100 means 100% of the support amount will go to the Share Vault and 0 means none will.

2. **Share Dilute Ratio**: This is the factor by which the shares in the Share Vault are diluted. When a supporter contributes, they receive shares based on this dilution ratio. The formula to calculate the shares a supporter would get is:


$$
\text{supporter_get_share} = \text{support_amount_change} \div \text{share_price} \times \text{share_pool_ratio} \times \text{share_dilute_ratio}\
$$

### Detailed Flow

1. A supporter decides to contribute a specific amount, referred to as `support_amount`.
  
2. A portion of this `support_amount` is sent directly to the Creator, calculated by multiplying the `support_amount` with `(1 - share vault ratio)`.

3. The remaining portion goes into the Share Vault. This is calculated by multiplying the `support_amount` with the `share vault ratio`.

4. The supporter receives shares from the Share Vault based on the `share dilute ratio`. The number of shares is calculated as `support_amount * share vault ratio * share dilute ratio`.

5. Over time, as more supporters contribute, the Share Vault continues to grow and the shares get diluted. The diluted value is then distributed among all shareholders.

By setting the `share vault ratio` and `share dilute ratio`, the Creator can adjust how much value goes directly to them versus how much goes into the Share Vault, as well as how many shares a supporter would receive for their contribution.

This model aims to create a balanced ecosystem where creators are directly rewarded for their work, while also building a sustainable, communal pool of funds in the Share Vault.

## Example

The initial setting of author is: 

- share vault ratio: 30%
- share dilute ratio: 30%

![](https://hackmd.io/_uploads/HyKoBvYM6.png)


![](https://hackmd.io/_uploads/Bkw5HDYM6.png)



