It provides an incentive to join the referral farm early in order to earn higher share of the daily rewards.This mechanism creates the same incentives as with yield farming and has two key characteristics: Referral farming works in a similar way to farming on a DEX, where farming-like rewards are distributed to those who “add value” to the token community via referrals (instead of providing liquidity). Everyone who joins the farm receives rewards based on their share of the total “position” in the referral farm. Therefore, to attribute a share of “added value” to both parties, the Oracles create two “positions”, one for each party (e.g., purchased tokens = 100 buyer’s position = 100 promoter’s position = 100).
And because a person who bought the tokens was influenced/persuaded by a promoter/recommender, we consider that both of them "added value" to the token community. To properly account for the "value added" via referrals, Attrace Oracles track the "position" of the amount of tokens bought and held (when said purchase came via a referral link). When you buy tokens and hold them, whether to keep, stake or provide liquidity, we say that you “add value” to the token community, or more specifically to the existing token holders or anyone who benefits from token value/price increase (typically projects or large investors in projects). Referral farming distributes rewards to those who “spread the word” about the tokens and those who buy and hold the tokens based on that recommendation. Referral farming, a concept invented by the Attrace team, aims to provide proper incentives for successful referrals of tokens. In the Attrace protocol, it is represented as a reward contract that distributes yield farming-like rewards for successful referrals. Referral farming is a smart contract deployed on Ethereum mainnet that distributes rewards based on the input received from the Oracles.
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