A New Era for Ebisu’s Bay: Sustainable Growth, Fair Rewards & Long-Term Prosperity

Updates

Table of content

Dear Ebisu’s Bay Community,

Over the past three years, we’ve built something incredible together. From a humble NFT marketplace to a thriving GameFi ecosystem with a DEX, Farms, and Ryoshi Dynasties, our journey has been defined by innovation and resilience.

But with rapid evolution comes new challenges. Today, we’re taking the three critical steps to ensure Ebisu’s Bay thrives for years to come.

  1. A limit on rewards vaults to balance distribution and reduce unchecked emissions.
  2. A restructured dynamic reward emissions system that scales with the health of FRTN rather than against it.
  3. A rework of the existing Farm Boost feature which works with the new emission system.

Additionally, to reward our most dedicated community members, we’re introducing the Loyalty Surge Program, allowing users to increase the limit on their reward vault for a limited time.These changes explained below are not just adjustments—they’re a strategic evolution to protect your investments, stabilize FRTN’s value, and create a fairer, more sustainable rewards system for all users. Let’s dive into the details of these changes, why they’re happening, and what they mean for you.

Why Changes Are Necessary

The Problem: Unsustainable Hyperinflation

Our initial reward systems were designed during a time of higher token valuations and without a future DEX in mind.  Our previous system of a guaranteed APR rather than set emissions which cause APR to fluctuate does not scale. While rewards fueled rapid growth especially for the liquidity of FRTN, they’ve become mathematically impossible to sustain at current token prices.

Additionally, while the added TVL we acquired on the DEX was a welcome addition we are not receiving enough volume to offset the reward emissions which would allow us to buy back FRTN with the fees generated. Cronos and especially Cronos zkEVM remain relatively low volume.

Even if we were to have 100% of the chain’s volume right now it would make little difference. We had expected Cronos zkEVM to have a much stronger start than we saw, and we expected growth and volume to pick up after the November market wakeup but volume, transactions, and active wallets have continued to decline rather than increase across the board on our chains, not only on our platform.

Nevertheless we are still extremely optimistic in the future of Cronos however, immediate action must be taken to reverse the direction of FRTN and sustain our platform for the long term. Sadly, short-term thinking has dominated with users prioritizing quick rewards over long-term platform health and growth.

The Solution: Balance & Sustainability

We’re rebalancing rewards to align with our current FDV and liquidity while ensuring all participants—from small holders to whales—benefit from long-term growth. This isn’t a cut—it’s a recalibration to protect your rewards and investments.

1. Reward Vault Caps: Fairness for All

To prevent hyperinflation, rewards will now be capped based on your Mitama tier. Higher tiers reflect long-term commitment and grant larger limits for your 90 day Karmic Debt Cycle.

Cap Table

Why This Matters:

  • Stops whale dominance: No single user can monopolize rewards.
  • Encourages compounding: Hit your cap? Compound rewards to grow your Mitama and unlock higher tiers.
  • Protects token value: Reduced sell pressure = stabilized price.

2. Dynamic Reward Emissions Tied to Platform Performance

We're introducing a more responsive and dynamic emission system that better aligns with platform performance. The new system starts with a base emission rate of 100,000 FRTN per day, distributed across our key reward categories. However, what makes this system unique is how it adapts to market conditions in real-time.

Daily Adjustments

The system calculates adjustments based on how current price and volume compare to their 7-day exponential moving averages (EMA):

These changes are then mapped to our tiered adjustment system:

Price Change % = (Current VWAP - 7-day Price EMA) / 7-day Price EMA
Volume Change % = (24h Volume - 7-day Volume EMA) / 7-day Volume EMA
Where:
- VWAP = Volume Weighted Average Price over 24h
- EMA = EMA_today = Price_today * (2/(7+1)) + EMA_yesterday * (1 - 2/(7+1))

Price Movement Tiers:

  • 2% price change: 2% emission adjustment
  • 5% price change: 5% emission adjustment
  • 10% price change: 8% emission adjustment
  • 15% price change: 12% emission adjustment
  • 20% price change: 15% emission adjustment

Volume changes affect emissions at 50% of the weight of price changes:

Volume Adjustment = Volume Change % * 0.5

The final daily emission is calculated as:

Daily Emission = Base Emission * (1 + Price Tier Adjustment + Volume Adjustment

For example, if FRTN's price increases by 12% compared to its weekly EMA, this would trigger an 8% increase in daily emissions. This tiered approach ensures that larger price movements result in proportionally larger, but still controlled, changes to emissions.

Weekly Base Rate Adjustments

To reward sustained positive momentum and protect against prolonged downtrends, the base emission rate itself can adjust weekly:

Weekly Base Adjustments:
- After 7 consecutive days of price increases: Base rate increases by 5%
- After 7 consecutive days of price decreases: Base rate decreases by 5%
- Maximum base rate: 166,667 FRTN/day
- Minimum base rate: 33,333 FRTN/day

These weekly adjustments help the system maintain appropriate emission levels during extended bull or bear markets while keeping emissions within sustainable bounds.

Reward Distribution

Once the daily emission rate is calculated, rewards are distributed across our ecosystem:

Reward Distribution

Real-World Example

Let's look at how this works in practice:

  1. Starting with our base rate of 100,000 FRTN/day
  2. Current market conditions:
    • FRTN VWAP: $0.0056
    • 7-day Price EMA: $0.0050
    • Price Change: ($0.0056 - $0.0050) / $0.0050 = +12%
    • 24h Volume: $150,000
    • 7-day Volume EMA: $125,000
    • Volume Change: ($150,000 - $125,000) / $125,000 = +20%
  3. Calculating adjustments:
    • Price movement of +12% maps to +8% emission adjustment (10% tier)
    • Volume increase of 20% creates +10% adjustment (20% × 0.5)
    • Total adjustment: +18%
  4. Final daily emission:
    • 100,000 * (1 + 0.18) = 118,000 FRTN

This new system provides more immediate feedback to market conditions while maintaining long-term sustainability. It rewards positive momentum more aggressively than our previous system, while still providing measured responses to market downturns.The tiered structure makes rewards more predictable and transparent, allowing users to better understand how market conditions affect their potential returns. Combined with the weekly base rate adjustments, this creates a robust system that can adapt to both short-term market movements and longer-term trends.Price and volume data is aggregated across all our official liquidity pools on both Cronos and ZK chains, ensuring the system responds to overall market conditions rather than isolated pool movements.

3. Reworking of Farm Boosts

With the above mentioned changes to emissions we are no longer giving set APRs which was the bedrock of the farm boosts. We have reworked farm boosts to be more inline and very similar to our upcoming resource harvesting mechanics.

For starters, rather than getting 20 seconds boost per troop sent into the farm you will send as many troops as you like to the farm and the rewards will be distributed by your troop contribution weight vs the weight of other users at the end of the day based on the following formula.

DAILY_EMISSION: Fixed daily emission amount (ie 30,000 FRTN)
totalTVL = sum(pool.tvl for all boostable pools)
totalBaseEmission = sum(pool.baseEmission for all pools)
Where:
baseEmission is the daily emission in the farm pre-boosting.
tvlWeight = pool.tvl / totalTVL
emissionWeight = pool.baseEmission / totalBaseEmission
// For each pool with active boosts
poolWeight = (tvlWeight * emissionWeight)^(1/3)
totalActiveWeight = sum(poolWeight for all pools with hasBoosts = true)
poolAllocation = DAILY_EMISSION * (poolWeight / totalActiveWeight)

Above is how we are determining how much of the Farm Boost emissions go to each LP in the program.  We used some fancy math (that cube root you see in the formula) to ensure that larger farms don’t completely dominate the rewards while still giving them a fair share.   Next we need to discover how much of those rewards goto each user based on their troop allocation to the farm.

troops: Number of troops submitted by farmer
lpValue: Value of LP tokens provided by farmer
logScale = log(troops + 1) / log(1.0001)  // Base 1.0001 for reasonable scaling
lpWeight = sqrt(lpValue)
farmerWeight = logScale * lpWeight
totalWeight = sum(farmerWeight for all farmers)
farmerShare = POOL_REWARDS * (farmerWeight / totalWeight)

Here we have continue our fancy math trend leveraging the magic of logarithmic scaling.

Instead of a simple "more troops = proportionally more rewards" system, we use a logarithmic scale. Think of it like a curved line that rises quickly at first but then levels off. This means:

  • Additional troops always help, but with diminishing returns
  • Whales still earn more, but can't dominate completely
  • Smaller players can compete effectively

For example, deploying 50,000 troops doesn't give you 5x the rewards of 10,000 troops - it's closer to 2x. This keeps farms competitive while still rewarding larger positions.

Limited-Time Opportunity: Enhanced Loyalty Surge Program

To reward our committed community members and incentivize platform growth, we're excited to launch the Enhanced Loyalty Surge Program. This tiered rewards system offers increasing benefits based on your Mitama growth commitment over the next 14 days.

Reward Tiers & Benefits

We've created a comprehensive tier system that rewards users proportionally to their increased commitment to the platform:

Surge Benefits

All reward multipliers remain active for a full 6-month period from program initiation, giving you substantial time to benefit from your increased commitment.

How It Works

  1. Your base Mitama amount is recorded at the time of this announcement
  2. You have 14 days to increase your Mitama holdings
  3. The percentage increase determines your reward tier
  4. Your vault cap multiplier is locked in for the full 6-month duration

For example, if you currently hold 100,000 Mitama and increase to 150,000 Mitama (50% increase), you'll receive a 2x vault cap multiplier for 6 months. Push that to 200,000 Mitama (100% increase), and you'll earn a 3x multiplier. Achieve 250,000 Mitama (150% increase) to maximize your benefits with a 4x multiplier.

This program provides a unique opportunity to substantially increase your earning potential while contributing to FRTN's long-term stability. The more you commit to the platform's growth, the greater your rewards will be.

Future Perks: Crafting & Karmic Debt Relief

Our upcoming Land Update will introduce craftable items to:

  • Temporarily increase vault caps.
  • Reduce karmic debt penalties.
  • Decrease the Compound cooldown.

Stay tuned—strategic players will unlock even greater rewards.

Why This is a Win for Everyone

  1. FRTN Stability: Reduced inflation = preserved purchasing power.
  2. Fairer Rewards: Caps prevent whale dominance; small holders thrive.
  3. Long-Term Growth: Sustainable APRs attract serious investors.
  4. Still Competitive: Even after adjustments, rewards outperform traditional yield platforms while offering unique perks like Mitama tiers, karmic debt mechanics, and gameplay integration—features no other platform combines.

Remember: Early adopters helped to build our liquidity from 100k to 650k over these past months. We have a strong foundation we’ll now regrow sustainably.

Conclusion: Stronger Together change is never easy, but it’s necessary for survival. These updates ensure Ebisu’s Bay isn’t just another “fly-by-night” project—it’s a lasting ecosystem where patience and participation are rewarded. We’re committed to transparency every step of the way. Join us in this new chapter, capitalize on the Loyalty Surge, and let’s rebuild—together!

To the future,
The Ebisu’s Bay Team

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