Winnings

The liquidity absorption mechanism in Awakeness works by transferring the liquidity of the losing token to the winning token at the end of each round. At the end of a round, the winning token is determined by comparing the price of each token in the pair and selecting the token with the highest price. Once the winner is determined, the following steps take place:

• The remaining fee manager balance of the winning token (A) and losing token (B) are swapped for $MAI.

• The manager balance of the losing token (B) is swapped for $MAI.

• The $MAI is added to the pending fees.

• The B/$MAI liquidity is removed.

• The $MAI is swapped for the winning token (A)

• The remaining A & B tokens are burned -- Burn of A token happens ONLY in the final round.

This process ensures that the winning token receives an influx of liquidity, while the losing token is eliminated from the tournament. It should be noted that this process is automated by the smart contract that manages the liquidity and mints the tokens at the beginning of the tournament.

It should be also noted that this mechanism is designed to create fair and random competition, as each round's end time is chosen randomly, with a minimum of 10 hours and a maximum of 30 hours, this way the outcome of each round is determined by the token with the highest price at the end of each round and the probability of a round ending is determined by a formula that increases the probability of ending as the time passes.