Holding is a separate participation path
The proposed holder pot distributes part of net protocol LP revenue to eligible RESERVE balances. A holder does not earn another liquidity provider’s fees simply by owning RESERVE.
Holder distributions are funded reward allocations. They are not automatic stock dividends, a fixed interest rate, or a claim on the underlying companies paired in the pools.
The demo’s eligibility rule
Only RESERVE in the available demo account balance is eligible. Staked RESERVE and RESERVE deposited into an LP position are excluded. At each simulated epoch, your balance is compared with 4,950,000 fixed example RESERVE held by other eligible participants.
The opening holder reward balance is seeded for demonstrating claims. It is not earned by loading the page and cannot be redeemed for actual USDG.
Demo holder reward = protocol fee pot × 50% × your wallet RESERVE / (4,950,000 + your wallet RESERVE)A production snapshot needs more rules
- Define an epoch’s exact start and end, snapshot blocks and minimum holding requirements.
- Choose snapshot or time-weighted eligibility and mitigate short-term balance borrowing.
- Publish exclusions for treasury, burn, LP and staking custody addresses.
- Make the allocation data reproducible so independent observers can reconcile the funded pot.
- Handle reorgs, rounding, unclaimed amounts and corrections with a documented procedure.
How claims would be verified
One proposed approach is an epoch-based Merkle distributor: a claim proves that an address has a specific allocation in a published root. The contract verifies the proof, checks whether the allocation was already claimed and pays only from funded assets.
No such distributor is deployed here. The demo uses a local balance and clears it when claimed. A live implementation must bind claims to a chain, distributor, account and epoch and prevent duplicate payouts.
Claim in the app
Open Rewards and find Holder rewards. Review the amount, then confirm the demo claim. The example USDG enters the available balance and the claimed amount is recorded in local activity. Your RESERVE principal is unchanged.
Prepared live holder design
The worker reconstructs confirmed RESERVE transfers and weights eligible balances by holding time across each epoch. Known protocol, staking and DEX custody is excluded together with the approved exclusion list. Arbitrary new custodial addresses are not automatically recognized.
The publisher commits funded Merkle allocations bound to the chain, distributor, epoch, account and amount. Claims cannot repeat, expire or exceed the committed budget. Published roots cannot be rewritten. The publisher is trusted to calculate honest allocations; snapshot evidence and proofs are published for independent checks. The contracts are not deployed yet.