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What are Darwinian Dividends

Darwinex pays out all performance fees from Community DARWINs as Darwinian Dividends.

Where do the dividends come from?

The dividends' source are Community DARWINS.

A Community DARWIN is like every other DARWIN in that:

  • It competes for investor capital with other signals.
  • Investors replicate trades while not knowing trade specifics in order to protect trader intellectual property (IP).
  • Investors pay the standard 20% performance fee

It differs from all other DARWINs in benefiting from private information that belongs:

  • Not to the Exchange
  • Not to any one Exchange member
  • But to every Exchange member

For this reason, Darwinex pays out all performance fees on Community DARWINs as Darwinian Dividends.

Why are they paid out by merit?

What is the best way to structure dividend payouts resulting from community signals? Pro-rata payment (every trader receives an equal pay-out) or skewed payment (according to some meritocratic criteria)?

Our take: meritocracy!

Darwinex pays dividends to the best providers, because it’s a win-win for traders, investors and Darwinex.

The better the traders supplying individual DARWINs, the bigger the incentive for new traders and investors to join. The more statistically significant the collective signal available to all, the bigger will be the the 80% kept by demand (=investors) for individual and collective signals and the 20% earned by signal suppliers (=DARWIN Providers).

Payout format

Dividends are paid to the top 10 DarwinIA winners in a given month should community DARWINs accumula 10k in performance fees paid. If not it will be paid in multiples of €1,000.00 starting from the winner of the first place downwards.

Dividends get accumulated in T+1 monthly cycles, meaning that the winners in month X will share the performance fees accumulated up until the end of such month.

For illustration purposes, assume 3 success-fee scenarios for total success fees collected by community DARWINs in a given month.

  1. Performance fees paid €5,500.00: Top 5 DarwinIA winners will receive €1,000.00 each, with €500.00 rolled over to the following month
  2. Performance fees paid €12,500.00: Top 10 DarwinIA winners will receive €1,000.00 each, with €2,500.00 rolled over to the following month
  3. Performance fees paid €1,500.00: The winner of the first place of DarwinIA will receive €1,000.00, with €500.00 rolled over to the following month

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