Dear valued customers,
We would like to inform you that effective August 2024, Moolah has implemented a new method for calculating Cashback (CB). This updated method will see bonuses earned by players on a given day, such as "Cashback", "Battle Prizes" and "Spot Bonuses" removed from the CB calculation for future distribution cycles.
For clarity, we have provided both the old and new formulas for calculating Cashback below:
❌ Old Daily Cashback Calculation:
Daily Cashback (Per Currency (Token) =
(Currency Wagered Amount - Currency Won Amount) * Cashback Rate
✅ New Daily Cashback Calculation:
Daily Cashback (All Tokens/Currencies) =
(Total Wagered Amount - Total Won Amount - Cashback Collected - Bonuses Collected) * Cashback Rate
Full details on MLH "Cashback" calculation & distribution can be found HERE
Why the change?
Our previous calculation method was found to be flawed as it did not account for the inevitable up and down swings of gameplay and while it ensured players received 100% of their cashback rate on losses (as was the primary goal of the program) it also guaranteed that this would be the minimum received and more often than not, that actual payouts distributed would be more more.
The nature of gambling is that players will some time win and sometimes lose or win and then lose, or lose and then win, with swings up and down losses are made and then recovered being par for the course.
But in combination with a daily structure results for Cashback, the result we see is that this results in actual distributions on average, of double the percentage cashback rates assigned to players across all user Level This is the a seen across all players and time periods analyzed.
In July 2024, Moolahverse offered a 10% Cashback promotion for all players allowing us to gauge the impact of the daily structure and with 99% of players on and even playing field since the site first launched. The result?.... Cashback for July was 18.3% of all revenue.
This also had a significant impact on other reward programs such as Daily MLH Staking and Weekly VIP Rewards as both of these pools are based on revenue share.
Some of our long term players have recently agreed to share their stats for the community for our "Player Profiles" and CB rewards vs deposits & wagering clearly demonstrates the extent of the issue.
We are also aware that including rewards and bonuses in the CB calculation is compounding this issue. These rewards are provided from site revenues and are not direct player losses. Therefore, including them in the calculation essentially means paying Cashback on these funds twice and this may be one of the primary causes of the issue.
It's worth noting that each dollar paid or overpaid on any program is one token away from another. This includes reward programs, marketing initaitives, development task and achieving our goals promised by the roadmaps etc. and these typs of issues can have far reaching consequences on public confidence, token price and more.
July saw the MLH staking pool growth first stop and then decline causing concern among investors and stakeholders alike and despite our efforts to combat the negatives by adding18k USD to the staking pool on August 4th,, many any players including some long time players pulled their support and funds from the site over the July and august period.
In order to address this, we have chosen to focus on how Cashback is calculated, rather than moving away from a daily structure. This will bring payments back in-line with the intended rates and percentages and although the daily structure will remain calculation will be done twice a week on Monday and Thursday with 50% of payments occurred on the day of calculation and the other 50% staggered over the following 3 and 4 days respectively.
Thank you all for you understanding and continued loyalty and support the site..
Sincerely,
The Moolah Team