# #Sustainability

In
Published 2022-11-07

## #Active Reward Mechanism (ARM)

Our Active Reward Mechanism is our unique approach for solving scalability issues that can be seen in the DeFi space.

'ARM' will automatically determine the rewards per Cargohold every day utilizing factors such as reward pool size, new cargohold creation, and total cargoholds created. In addition, our team has implemented functions to reassess the reward pool at any time to ensure the sustainability of the project.

P= \text{Amount of \$CARGO rewards in the Rewards Vault} N= \text{Number of Total Active Cargoholds} X= \text{Constant used to scale R, X will initially be 1} R= \text{Payout per Cargohold} K = \text{Calculated once per day to determine R} Z= \text{Average days in month (30)} Base Formula: K = 3 \dfrac{\dfrac{P}{N}-(Z - 1)}{Z^3 - 1} Rewards Formula: R= \begin{cases} 1 & \quad \text{when$K \geq 0$}\\ K X^2 + 1 & \quad \text{when$\dfrac{-1}{Z^2} \leq K \leq 0$}\\ \dfrac{P}{ZN} & \quad \text{when$K \leq \dfrac{-1}{Z^2}$} \end{cases} Recurring evaluations of this formula will occur to ensure that we're being fair to all investors, not just catering toward the early investors of the project. ## #Universal Sustainable Growth Fund (USGF) Our Universal Sustainable Growth Fund allows for the team to make cross chain investments into emerging blockchain validators, stable coin farming, or high yield growth projects. We understand that the demands and opportunities in DeFi are constantly changing, and we plan to be at the forefront of change directly benefiting our community. When creating a Cargohold, the 20 tokens are distributed with 15.5$CARGO sent to the Rewards Pool, 3 $CARGO sent to the Liquidity Pool, and 1.5$CARGO (equivalents in CRO) sent to the Universal Sustainable Growth Fund. Half of the $CRO and$CARGO sent to the Liquidity Pool from new cargohold creation will be re-allocated as follows: $CARGO will be transferred into the Rewards Vault.$CRO will be deployed to our Universal Sustainable Growth Fund that will be used for cross-chain investing that allows for the company to grow and benefit Cargohold holders.

The Cargohold breakdown (for a standard purchase using $CARGO) is as follows: • 15.5$CARGO will be sent to the Rewards Vault. The size of the Rewards Vault is one of the variables used by ARM to calculate rewards.
• 3 $CARGO will be split 50/50 to form$CARGO/$CROS LP. • 1.5$CARGO will be sent in CRO the Universal Sustainable Growth Fund.

Mint Breakdown in Table Form

Destination CARGO Token Count CARGO Token % used to Mint
Rewards Vault 15.5 77.5%
Liquidity Pool 3 15%
USGF 1.5 7.5%

In addition to ARM and the USGF, the Cargo launch will include the following wallet level features:

• Monthly Maintenance Fees (Wallet Level)
• Nodey the Whale Utility NFT Collection (Wallet Level)