REWARD MECHANICS

Creator rewards

Creator rewards convert configured fee proceeds into a selected Solana token, calculate each eligible holder’s proportional entitlement, and publish the evidence required to verify every distribution round.

Round lifecycle

  1. Collect creator fees.The keeper resolves whether the token is on the bonding curve or graduated and uses the corresponding official fee path.
  2. Open a numbered round.The program records the project, sequence number, input amount, and execution state before value changes.
  3. Purchase the reward token.A bounded Jupiter route swaps the configured input while enforcing program, mint, slippage, output, and price-impact limits.
  4. Snapshot holders.Finalized SPL token balances are consolidated by owner, filtered through the exclusion policy, and committed to a specific slot.
  5. Calculate entitlements.The full purchased amount is allocated proportionally with deterministic remainder handling.
  6. Distribute and publish.Payout batches or holder claims use the committed root and record their resulting signatures.

Reward calculation

holder_reward = purchased_reward_amount × eligible_holder_balance ÷ eligible_supply

Eligible supply is the total balance remaining after exclusions. Integer division remainders are assigned deterministically so the sum of all entitlements equals the exact purchased reward amount.

Excluded categoryWhy it is excluded
Bonding curve and liquidity accountsNot independent holder positions
Burn addressesTokens cannot participate or claim
Project and reward vaultsPrevents the system from rewarding itself
Configured walletsSupports project-specific treasury, team, or service exclusions
Zero and dust balancesAvoids uneconomical payout transactions

Distribution modes and fairness

ModeBest fitOperational tradeoff
Direct payoutSmaller holder sets with meaningful balancesThe service pays transaction and token-account costs
Holder claimLarge communitiesEach holder submits a proof and pays their transaction
HybridAutomatic larger payouts with dust accumulationRequires more accounting and policy disclosure
Snapshot policy

Finalized randomized slots or time-weighted balances reduce last-second snapshot gaming. Every round should publish its snapshot slot, exclusion set, calculation version, eligible supply, and entitlement root.