MANTRA POOL is MANTRA DAO’s weekly DeFi draw for its Sherpa community. By participating in the MANTRA POOL, Sherpas can transform their OM into multiple chances to win big every week. It presents a novel way for MANTRA DAO to inject rewards earned from our Decentralized Finance services back into the Sherpa community.
DeFi draws have grown incredibly popular in recent years. Because it’s impossible to rig the transparent smart contract operating the draw, everyone knows they have a fair chance of winning when they take part. They offer a fun way to boost the utility of a native token like OM.
Another bonus of exchanging OM for entries into the weekly MANTRA POOL is that it helps reduce the amount of OM circulating in the market, and this benefits everyone participating in our DeFi draw, no matter who scores the top prize.
Mystical karma works in mysterious ways, but our platform’s KARMA can always be used by Sherpas to gain more entries for the MANTRA POOL. But what goes around does indeed come around, in that Sherpas who enter the MANTRA POOL will earn KARMA for joining, and that extra KARMA could be used to earn even more entries!
How the MANTRA POOL DeFi Draw Works
A MANTRA POOL draw is held every week. Depending on sponsorships and promotions, there could be more than one MANTRA POOL drawing per week, and reward values will also be determined on a pool by pool basis. Some weeks may have more prizes than others, so it’s a good idea to check what’s going on each week if you want to win big.
Prizes are culled from rewards earned via staking and by MANTRA DAO’s validator node services. 25% of these rewards is solely allocated for the purpose of returning value to the community by being set aside to furnish the MANTRA POOL with prize funding.
At the end of each week, five lucky winners are selected at random from all
valid entries, with the prize pool being split as follows:
- First place receives 50% of the total pool.
- Second place receives 25% of the total pool.
- Third place receives 12.5% of the total pool.
- Fourth and Fifth place each receive 6.25% of the total pool.
Prizes are usually distributed in either USDC or USDT stablecoins. Though, on occasion,
MANTRA DAO has sweetened the pot by adding ETH to the pool, as we did with 25% of the sales from our first NFT.
Winners have six days to claim their prizes. Unclaimed prizes are rolled over into the following week’s MANTRA POOL.
How Sherpas Can Enter a MANTRA POOL Draw
Sherpas can spend one OM token to receive one entry to a MANTRA POOL. There’s no limit on the number of entries a Sherpa can receive, and the more entries you have, the greater your chances of winning a share of this week’s prize.
Every currently live MANTRA POOL will have its total prize value displayed, as well as the number of people that have entered that pool and the number of entries that are currently up for drawing. There will also be a countdown timer that shows when the pool will end.
To enter a round, click the “Join Now” button next to its timer. A new window will open where you can enter how many OM you wish to deposit for entries. You will also be able to see your percentile chance of winning the pool based on the number of entries you make.
Moreover, Sherpas who participate in the MANTRA POOL receive KARMA. A wonderful resource, KARMA is a powerful tool for members of our community. It can be used to reduce interest rates on loans, increase earned interest on staked OM, and — for those with high levels of it — can even gain automatic entries to future MANTRA POOL drawings.
The Fundamentals Behind MANTRA POOL
MANTRA POOL is more than a fun crypto game. By participating in MANTRA POOL, Sherpas help build the treasury that increases MANTRA DAO’s ability to manage a wide variety of situations that require capital on hand.
Additionally, MANTRA POOL provides a steady mechanism for reducing the number of tokens in circulation without burning them. Since OM has a limited supply and acts as our DAO’s governance token, it’s not something we want to start burning in large quantities.
Many DeFi platforms that hold draws burn their tokens when participants buy entries, but MANTRA DAO has taken a different, more intelligent approach.
Instead of burning OM for MANTRA POOL entries, OM is deposited into a smart treasury wallet. By following a “buyback and make” policy instead of a “buyback and burn” approach, MANTRA DAO can leverage OM in more ways than if we destroyed it.
When a token goes into a smart treasury, it can be used in the future as a source of liquidity, act as an insurance fund, or even yield interest through other DeFi protocols. This would be impossible if we regularly burned OM.
So, in the same way staking tokens can help secure Proof of Stake (PoS) blockchains, participating in the MANTRA POOL helps MANTRA DAO fund its smart treasury for the future stability of our community DeFi protocol.
Join this week’s MANTRA POOL and see what happens. Good luck!