EOS Casino Reward Tokens - All You Need to Know
Most, if not all, EOS Casinos issue what is known as reward tokens or dividend tokens to their players as incentives to keep playing at their gaming sites.
These tokens are very similar to the VIP reward points one would earn at a regular land-based casino in Vegas, except that EOS casino rewards tokens usually offer some kind of profit sharing bonus back to token holders.
Mining / Earning Casino Tokens
The player earn reward tokens simply by playing the games at various EOS casinos. Playing is mining, like what they usually say on their sites and a number of reward tokens are earned for every EOS spent playing their games.
Also, like bitcoin mining, the amount of tokens awarded per EOS spent will usually be reduced as the total circulating supply of reward tokens increases. The rate of decrease of reward tokens issued is usually displayed on their site in the form of a table commonly referred to as the ‘mining schedule’. A very common mining schedule used by many EOS casinos is where rewards gets cut by half for every 10% of total tokens issued.
EOS Casino Dividends & Staking
There will usually be a dividend pool where a significant portion of the gaming revenue is collected by the site operator to be redistributed to reward token holders at regular intervals, usually daily but sometimes hourly or weekly.
To be eligible for the bonus payouts, players are normally required to stake their reward tokens first. Staked tokens are non-transferrable (hence not tradable) and unstaking them usually take at least 24 hours or longer.
Any EOS rewards earned usually need to be claimed at the gaming site itself although some EOS casino operators will send out the rewards to eligible token holders automatically.
A Quick Example:
Suppose an EOS Casino operator announced that 50% of all gaming revenue will be redistributed back to staked token holders every day. A total of 100 million reward tokens have been given out and staked.
Let’s say, on a certain day, total gaming revenue collected by this operator is 20000 EOS. So, 50% of that will be 10000 EOS going to the reward pool.
If a player has 1 million reward tokens staked, then his share of the dividends will be 1 million divided by 100 million which gives 1% profit share, which amounts to 100 EOS.
Trading & Buybacks
If the player chooses not to stake his reward tokens, he can sell them at the various decentralized exchanges, or DEX, on the EOS network. The most popular - and therefore the most liquid - DEX out there is newdex.io but there are also a few others out there as well.
To further return value to stakeholders, some EOS game operators also conduct token buyback programs where they use part of their operating revenue to buy back the Dapp tokens from the open market and then subsequently destroy or burn them.
This token buyback and burn operation helps to maintain the token price by reducing total supply as well as setting some sort of floor price for the tokens at the open market.
List of EOS Casinos with Reward / Dividend Tokens
Most, if not all, EOS casino dapps comes with a rewards token program. You can find them all in our comprehensive EOS games directory at EOSgames.guru.
Tap on the button below to view them all.