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, with actual payout percentages distributed far higher.
The nature of gambling is that players will sometimes win and sometimes lose with downswings and losses often being recovered in subsequent sessions, being par for the course.
But in combination with a daily payout structure of Cashback rewards, the outcome we see is that rewards distributed on average, are often close to 2x the percentage cashback rate assigned to players across all user Levels.
In July 2024, Moolahverse offered a 10% Cashback promotion for all players allowing us to gauge the impact of the daily structure with 99% of players on and even playing field since the site first launched. The result? Cashback payments across the board for July was 18.3% of total revenues.
This also had a significant impact on other reward programs including MLH Staking & 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 a dollar taken away from another areas impacting all the other reward programs, marketing, & development goals. It hinders the ability to deliver on scheduled roadmap initiatives and can have far reaching consequences if left unresolved, which could lead to undermining public confidence, devaluing MLH token price and even threaten the life of the project.
July saw growth in the Staking pool, first stop and then decline, causing concern among investors and stakeholders and prompting many to withdraw their tokens from the site during July & August period.
In order to address this, the Management team chose to revise how Cashback was calculated and rather than moving away from our unique daily structure the calculation will now be done twice each week on every Monday and Thursday with the payments the split over the following 3 and 4 days respectively so player continue to receive these rewards on a daily basis.
Management also authorised adding 18K Usd value to the Staking pool to combat the decline in addition to implementing the changes described above in hopes of steering "Cashback" payments back in line with the set percentages at each player level.
Thank you all for your understanding and continued loyalty and support.
Sincerely,
The Moolah Team