Automatic Distribution Guide for Beginners: How Token Rewards Work
Automatic distribution handles token rewards and fees for creators without manual work. On Spawned, it includes a 0.30% ongoing reward to holders from every trade and a 0.30% creator revenue fee. This guide explains the setup process and how it compares to manual distribution methods.
- •Automatic distribution on Spawned applies a 0.30% fee per trade that goes to the creator and a separate 0.30% reward distributed to all token holders.
- •The system is built-in and requires no coding. It activates when you launch a token using the platform's AI builder.
- •Compared to manual airdrops, it provides continuous, transparent rewards funded by trading volume, not the creator's wallet.
- •After graduation to Token-2022, a 1% perpetual fee structure replaces the initial model, sustaining the reward system.
Quick Comparison
What is Automatic Token Distribution?
Forget manual calculations and transactions.
Automatic distribution is a system where a portion of every token trade is automatically allocated according to pre-set rules. On Spawned, this means two primary actions happen with each swap:
- Creator Revenue: 0.30% of the trade value is sent to the token creator's wallet as income.
- Holder Rewards: 0.30% of the trade value is distributed proportionally among all current token holders.
This process is executed by the smart contract itself. There's no need for you to manually track trades, calculate amounts, or send transactions. The rewards are funded by the trading activity, creating a self-sustaining ecosystem where engaged communities are directly rewarded. This differs significantly from one-time manual airdrops, which deplete a creator's token supply. Learn about airdrops.
Spawned Automatic vs. Manual Distribution: A Direct Comparison
Why drain your supply when trading volume can fund rewards?
Understanding the difference between built-in automation and doing it yourself is key for creators.
| Feature | Spawned Automatic Distribution | Manual Distribution / Airdrops |
|---|---|---|
| Cost Source | Funded by a 0.30% fee on trades. | Paid from the creator's personal token supply or wallet. |
| Frequency | Continuous, with every eligible trade. | One-time or scheduled events requiring manual execution. |
| Setup | Included at launch with the AI builder; no code. | Requires custom smart contract development or manual wallet lists. |
| Transparency | On-chain and verifiable for every holder. | Can be opaque; holders may not know criteria or timing. |
| Sustained Incentive | Yes. Active trading directly rewards holding. | No. Effect diminishes after the distribution event. |
| Creator Effort | Zero maintenance after launch. | High effort for planning, execution, and community management. |
The core benefit is sustainability. Manual methods give away your capital. Automatic methods create a revenue-sharing model that grows with your project.
How to Set Up Automatic Distribution in 4 Steps
The setup is part of your token creation, not an add-on.
Using Spawned's AI builder integrates distribution from the start. Here’s the process:
Step 1: Launch with the AI Builder Navigate to the AI builder, input your token details (name, symbol, description), and generate your site. The distribution logic is part of the standard launch template.
Step 2: Configure Initial Parameters During the launch flow, you'll see the default fees: 0.30% creator revenue and 0.30% holder rewards. These are pre-set and verified before you proceed.
Step 3: Deploy and Fund Liquidity Approve the launch (cost: 0.1 SOL + liquidity). Once deployed, the smart contract is live. The automatic systems are active as soon as trading begins.
Step 4: Monitor and Share Use your AI-built website to direct your community. Holders can see their accumulating rewards in their wallets or via the site's dashboard. No further action is needed from you to maintain distributions.
This process saves the $29-99/month typically spent on separate website builders and development fees for custom reward contracts.
How Holder Rewards Work: Key Details
The 0.30% holder reward is a distinctive feature. Here's what creators and holders should know:
- Proportional Distribution: The 0.30% reward pool is split among all holders based on their percentage of the total supply. Larger holders get a larger share, but all participants benefit.
- Automatic Claims: Rewards accrue continuously. In many implementations, they are automatically added to a holder's balance, requiring no claim transaction, which saves users time and gas fees.
- Built-in Marketing: A continuous reward acts as a powerful incentive for holders to keep tokens and promote the project, as new buyers increase the trading volume that funds the rewards.
- Post-Graduation Model: After moving from the initial launch pool to a full Token-2022 standard token, the fee model shifts to a 1% perpetual fee. A portion of this typically continues to fund holder incentives, ensuring long-term viability.
Verdict: Should Beginners Use Automatic Distribution?
The simplest path to a professional, sustainable token launch.
Yes, automatic distribution is the clear choice for most new token creators, especially on a platform like Spawned.
For beginners, the primary challenges are complexity, cost, and time. Manual distribution fails on all three. Building a custom system requires development skill, ongoing management, and constant capital outlay.
Spawned's integrated system turns a complex operational task into a simple launch checkbox. It provides an immediate, tangible benefit (holder rewards) that can help a new token stand out, all while generating a small, sustainable revenue stream (0.30%) for the creator from day one. The included AI builder eliminates another major cost and hurdle.
The alternative—launching without it—means missing a key community growth tool and leaving potential revenue on the table. For the cost of 0.1 SOL and the liquidity you provide, you get a functioning token with built-in economic incentives and a professional website. Compare launchpads to see how this feature stacks up.
Ready to Launch with Automatic Rewards?
If you're a creator looking to build a token with built-in incentives and a professional presence, the next step is straightforward.
Start with the Spawned AI Builder. You can design your token's website and configure your launch in minutes, with automatic distribution as the default, recommended setting. This approach bundles your marketing site and your token's core economics into one efficient launch process.
Explore the best AI builder for tokens to understand the full feature set, or see how a token platform with an AI builder simplifies the entire journey from idea to live project.
Related Topics
Frequently Asked Questions
No. This is a critical difference from manual airdrops. The 0.30% holder reward is a fee applied to each trade on the token. It is sourced from the transaction itself, not from the creator's personal token allocation. Your initial supply remains untouched, and the rewards are funded by the trading activity your project generates.
No coding is required. On Spawned, automatic distribution is a configured feature of the launch process when you use the AI website builder. You select your parameters during the guided setup, and the platform handles the smart contract deployment. It's designed for creators without technical backgrounds.
Typically, the core fee structure (like the 0.30% creator and holder fees) is immutable once the initial launch pool contract is live to ensure trust and predictability. However, when you graduate your token to the Solana Token-2022 standard, you establish a new, permanent fee structure (the 1% perpetual fee). The allocation of that fee can be designed with flexibility for future needs.
The method depends on the implementation. Often, rewards are automatically reflected in a holder's wallet balance or through a project-specific dashboard on the token's website (built by the AI builder). Some systems require a manual claim transaction. Spawned's model is designed for simplicity, aiming to make rewards visible and accessible with minimal effort for the holder.
Rewards are directly proportional to trading volume. Low volume means smaller, less frequent reward distributions. This aligns incentives: creators are motivated to build an active project, and holders are rewarded for supporting tokens with genuine activity. It's a more organic model than large, unsustainable manual airdrops.
It's a different cost structure. A manual airdrop has a high upfront cost—you give away a chunk of your token supply. Automatic distribution has no upfront token cost. Instead, it uses a small fee on transactions. For creators, this is often more sustainable, as the 'cost' is paid by the ecosystem's users, not your initial capital.
Feature availability varies. Many basic launchpads like pump.fun focus solely on the launch mechanism and offer 0% fees, which means they typically don't include built-in reward systems. Spawned integrates this as a core feature alongside its AI website builder, positioning it as an all-in-one solution for token creation and community growth.
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