Incentive Cycles
The Paca Collective operates in recurring cycles. Each cycle is a fixed time window during which your holdings and loyalty determine your participation weight for any discretionary incentives the protocol may distribute.
Participation weight = Cycle Balance x Loyalty Multiplier
How Cycles Work
Cycle Start
When a new cycle begins, the system snapshots your current on-chain PACA balance. This becomes your Cycle Balance — the amount counted toward your participation weight for this cycle.
During the Cycle
The system periodically monitors your wallet balance. As long as your balance stays at or above your Cycle Balance, you remain Active and eligible for the cycle.
Cycle End
At the end of the cycle, participation weights are calculated for all eligible members based on their Cycle Balance x Multiplier. A new cycle then begins automatically.
Cycle Countdown
Your dashboard displays a live countdown showing when the current cycle ends. This helps you plan and know exactly when your next Cycle Balance will be refreshed.
What Happens Mid-Cycle
| Action | Effect on Current Cycle | Effect on Next Cycle |
|---|---|---|
| Hold | Stay active and eligible | Cycle Balance refreshed from wallet |
| Buy more PACA | No change to Cycle Balance (new tokens don't count yet) | New balance included in next Cycle Balance |
| Sell any PACA | Disqualified — ineligible for rest of cycle | Multiplier resets, starts fresh |
| Transfer PACA out | Disqualified — treated same as selling | Multiplier resets, starts fresh |
New Members
When you first join the Paca Collective, your Cycle Balance is set to zero for the remainder of the current cycle. This means:
- You won't be eligible during the cycle you join
- Your balance will be included starting from the next cycle reset
- Your loyalty multiplier begins growing immediately from the moment you subscribe
This prevents gaming — without this rule, someone could subscribe seconds before a cycle ends and receive the same consideration as someone who participated for the entire cycle.
Disqualification
If you sell or transfer PACA out of your wallet during a cycle, you are disqualified for the rest of that cycle:
- Your status changes to Disqualified on the dashboard
- You are ineligible for any incentives that cycle
- Your loyalty multiplier resets to 1.00x
- At the next cycle, you start fresh with a new Cycle Balance and begin climbing again
The system detects sales in two ways:
- Instantly — any PACA sell on the Alpaca DEX is detected in real time
- Periodically — a background check catches any other balance decreases (wallet-to-wallet transfers, external exchanges, etc.)
Summary
- Cycles are recurring time windows for tracking participation
- Your Cycle Balance is locked at cycle start — buying more PACA mid-cycle doesn't increase it
- Selling disqualifies you for the rest of the cycle and resets your multiplier
- New subscribers wait for the next cycle before they're eligible
- Your participation weight is proportional to: Cycle Balance x Loyalty Multiplier
- All incentives distributed through the program are discretionary and not guaranteed