• Rewards are distributed at the end of every month to each protocol’s “Deployer Address” submitted in the Kava Rise Registration Form. These rewards are in KAVA tokens and are liquid.
• Rewards are calculated by taking the protocol’s time-weighted-average TVL over the period divided by the total time-weighted-average TVL multiplied by the rewards for the period.
• Kava is allocating 1 mln KAVA each month (as of February 2023).

Summarized, The Reward Calculation Is As Follows:

Project Rewards = [Project time-weighted-average TVL] / [Total time-weighted-average TVL] * Total-Period-Rewards

Example:

Project time-weighted-average TVL = $15,000,000

Total time-weighted-average TVL = $600,000,000

Total-period-rewards = 2,000,000 KAVA.

Protocols rewards: 50,000 KAVA / month = ($15,000,000/$600,000,000)*2,000,000 KAVA

This results in an annualized 600,000 KAVA (approx. $1,600,000) in rewards for the protocol.

Let's Take an Example

→ DefiLlama currently reports Project X to have $12.26M TVL on Avalanche. → IF Project X had the same amount of TVL on Kava.

<aside> ➗ Well let's do the math ($12.26M/$266.68M - total Kava TVL) = 4.59%

</aside>

→ You would essentially be getting 4.59% of monthly rewards that month.

Kava releases 1M Kava each month, which is 1M Kava * 4.59% = 45,900 Kava for this month. Which is about $40K USD at current Kava price.