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# System prepended metadata

title: SPS Governance Proposal - Add SPS Rewards for Guild Brawls

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# SPS Governance Proposal - Add SPS Rewards for Guild Brawls

A proposal is being put forth to a vote of all staked SPS token holders to decide the distribution for SPS in guild brawls at the following levels found below. Per the SPS whitepaper there is 2.5M SPS allocated for guild brawls per month so this proposal is focusing on the distribution method of those rewards.

|Tier|% of Reward Pool|SPS per Brawl Cycle|SPS per year|
|--|--:|--:|--:|
|1|10.00%|41,095.89|3,000,000|
|2|15.00%|61,643.84|4,500,000|
|3|20.00%|82,191.78|6,000,000|
|4|25.00%|102,739.73|7,500,000|
|5|30.00%|123,287.67|9,000,000|

When it comes time to pay out rewards at the end of a Brawl, the SPS per Tier per Brawl Cycle (shown in the table above) gets divided equally by the number of individual Brawls in each Tier for any given Cycle. At this point, fractions are rounded to 3 decimal places. The result is the prize pot for each Brawl.

Next, we determine the share of the prize pot that each participating guild gets, which shall be proportional to the pts of the guild vs total pts for that particular Brawl. Hence SPS rewards will be greater for guilds that get the most points from battles. This is almost the same as the method for dividing the Crown pot, except there is no bonus amount for the Top 3 guilds as there is for Crowns.

Finally, the SPS awarded to each guild gets divided by the number of Frays for that Tier, to arrive at the max amount of staked SPS that can be given to each participating guild member.

Each guild member’s staked SPS share is determined following the same rules as Merits. Namely, for a given Brawl, only guild members who submit at least 75% of their battles (i.e. have 25% or less unsubmitted battles) are eligible to receive the full SPS amount for rewarding individual participation. Otherwise, the amount of SPS given is proportional to the number of battles submitted; for example, submitting 3/5 battles = 60% of the full amount of SPS.

In addition to the distribution above, some questions we have heard from the community on this proposal are below:

### What happens if there are only a small number of guilds in a given tier?

If there are fewer than 10 guilds actively participating in a brawl tier, then the total rewards available for that tier will be reduced proportionately. For example, if there is only a single guild in a tier, then only 10% of the total SPS rewards would be available for that tier. Similarly, if there are 3 guilds in a tier, then 30% of the rewards would be available, etc. until there are 10 or more guilds at which point 100% of the rewards are available.

There are still significant advantages to moving up and being one of the first guilds to move into a new tier, but we feel that this restriction adds reasonable upper limits in these cases.

Please note that if there is only a single guild in a brawl tier, the current behavior of the guild getting automatically moved down to the nearest non-empty tier will still occur. So such a guild will still have the fun of brawling, in addition to an extra SPS reward. This is another way to ensure guilds do not feel hesitant about moving up in tiers, and recognizes the phenomenal achievement of a guild that has beaten all others to become the first to reach a higher tier.

### Where does SPS that goes unallocated go?

Unearned SPS will be returned to the DAO. Future proposal votes could allocate this SPS in any way upon which the DAO agrees. 

### How many guilds are in each tier currently?

|Brawl Tier|Frays|Guilds in this Tier|Brawls in this Tier|
|--|--:|--:|--:|
|1 star|13|523|58|
|2 stars|16|235|26|
|3 stars|18|30|3|
|4 stars|21|0|0|
|5 stars|25|0|0|

We look forward to these SPS rewards providing significantly increased incentive for players to join guilds, participate in brawls, and move up to higher brawl tiers which should help to increase the overall engagement of players and help to bring more fun and value to the ecosystem.
