OnRe has launched a new rewards program that will reward user activity in DeFi with points redeemable for tokens. The system, based on the rule “one point per ONyc per day”, incorporates multipliers for activities that add greater value to the ecosystem and a temporary boost for early adopters of up to 4x in point accumulation, encouraging active participation and long-term loyalty.
Points Program Mechanics
The program operates through daily rewards, where holders receive one point for each ONyc in their wallet per day. The platform will assign additional multipliers for activities that involve higher risk or capital usage, such as:
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Providing liquidity in ONyc pools on external platforms (like Aave or Compound, once integrated).
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Governance staking.
Early participants will receive a temporary incentive of up to 4x in point accumulation, although this boost will have a limited duration. The entire system relies on on-chain traceability, allowing validation of point distribution, compliance audits, and ensuring full transparency within the ecosystem.
Conversion of Points to Tokens
OnRe has announced that it will allocate a significant portion of the token supply to point accumulators, though the exact conversion rate has not yet been disclosed. This strategy links on-chain rewards with access to real-world reinsurance yields, adding a tokenization dimension tied to real assets and providing new investment opportunities for the most active users.
Implications for the Ecosystem
The initiative reshapes liquidity and ONyc usage incentives in the ecosystem, impacting three main groups:
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Users: receive one point per ONyc per day plus multipliers for liquidity provision and staking, incentivizing more engaged behavior.
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Developers: must integrate on-chain tracking to validate activity and maintain consistent data.
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Compliance teams: face new KYC/AML and reporting requirements based on on-chain traceability, ensuring higher security and regulatory compliance.
The calibration of multipliers will be a key factor, favoring activities involving higher capital and risk, and promoting ecosystem stability and growth over the long term.
Next Steps
OnRe plans to publish the detailed rules for multipliers and the points-to-tokens conversion rate soon. The company has already begun communicating the initial details of position tracking through its official channels, preparing the community for a structured and transparent implementation.
This innovative design aims to combine typical DeFi incentives with reinsurance yields, creating a hybrid model that maximizes efficient capital use, strengthens user engagement, and solidifies OnRe’s value proposition as a sustainable and scalable ecosystem.
