🔁Profit Sharing

Concept

Profit sharing is the cornerstone of $CHIP token utility and the driving force behind its economic model. Unlike many tokens in the industry that primarily serve as voting rights with limited utility, the $CHIP token is designed to offer tangible value. Rather than being subject to mere speculation, $CHIP tokens function similarly to shares, entitling holders to dividends and establishing them as partial owners of the platform.

At Frosty.casino, this dividend-equivalent model is realized through profit sharing. A portion of the profits generated from platform activities, such as gambling, is allocated to a specific profit-sharing treasury. This fund is then distributed among $CHIP token holders who participate in staking.

The main advantage of this approach is that $CHIP tokens are non-inflationary, with a fixed supply. Token holders can still earn rewards through staking, which are paid in SOL—an extremely liquid asset.

Profit Distribution

30% of the platform's profits are designated for $CHIP token holders. This percentage is carefully chosen to maintain a balanced and sustainable economic model. The platform needs to retain a portion of the profits to cover operating costs and to invest in new games and content. Additionally, a significant share of the profits is allocated to affiliates and ambassadors who play a crucial role in attracting new customers and driving platform growth.

Staking

$CHIP tokens can be staked within the profit-sharing treasury smart contract. At the end of each epoch, a snapshot is taken to determine the total SOL token profits in the treasury and the amount of $CHIP tokens staked. Based on this snapshot, SOL tokens are distributed proportionally to stakers according to their share of the total staked $CHIP tokens.

This process occurs at the end of each epoch, with profits accumulating throughout the period. There is no lockup period for staking; tokens can be staked and un-staked at any time without losing rewards. However, rewards are first paid out starting from the second epoch after staking.