Payout in DORs with Multiple Tenors

If the Operator requires Panelists to submit forecasts for different tenors simultaneously, the Panelist Reward Pool will be divided among the various forecast groups to incentivize predictions for each tenor separately. The reward distribution is determined by the Operator, which may use set percentages or specific formulas to allocate rewards.

As a general guideline, Operators are encouraged to allocate a higher proportion of rewards to longer-tenor predictions, reflecting the greater uncertainty associated with these forecasts compared to shorter-tenor ones. For example, an Operator could apply a square root time-weighting method, where the reward allocation for each forecast is proportional to the square root of its tenor.

In practice, if an Operator requires Panelists to predict DOR values for tenors of 1-day, 7-day, 14-day, and 30-day on a daily basis, the reward allocation could look as follows:

In this specific example, approximately 7.77% of the rewards each day would be directed to all Panelists who submitted predictions for the 1-day tenor, 20.57% for those who submitted predictions for the 7-day tenor, and so on.