Hello @simplymike,

to clear up a bit of your confusion.

You actually have deposited 10 Steem into your account:

Not entirely clear to me, but it's obviously a way to get people to play daily. My best guess is that - if you want to optimize your earnings - you have to battle 120 games a day to get that 20% bonus.

The loyalty will decrease by only 1% per day, if you don't play a steemed battle that day.
Your loyality will increase by 1% per steemed battle.
So nobody does have to play 120 games a day, although we wouldn't mind that 😉

You can read more about the daily pot and how the rewards work in general in this post we made a few example calculations there.

Thanks for your support!

For Steem we fight!
-@mwfiae