Holder Rewards Technical Deep Dive

Overview

Holder rewards on Spawned are distributed automatically from trading fees. Every buy and sell generates a 1.25% fee, of which 0.30% goes to token holders proportionally based on their holdings.

Fee Breakdown

When someone trades your token:

• 0.65% → Platform (Spawned)
• 0.30% → Creator (you)
• 0.30% → Holder rewards pool

Distribution Mechanism

Rewards are calculated based on your percentage of total supply held. If you hold 1% of tokens, you receive 1% of the holder rewards pool.

Example Calculation

Trade: 10 SOL buy Holder fee: 0.03 SOL (0.30%)

If you hold 100M tokens out of 1B total supply (10%):

• Your reward: 0.003 SOL

Claiming Rewards

Rewards accumulate in real-time and can be claimed at any time. There's no minimum claim amount, but consider gas costs when claiming small amounts.

Claim Process

1. Go to token page
2. Click "Claim Rewards"
3. Confirm transaction
4. SOL arrives in wallet

Technical Implementation

Spawned uses Token-2022's transfer fee extension for on-chain fee collection. Rewards are stored in a program-derived account and claimable via our smart contract.

Key Addresses

• Fee collection: Program-derived from token mint
• Reward distribution: Proportional snapshot at claim time
• No staking required: Simply holding tokens qualifies you

Maximizing Rewards

Hold more tokens - Rewards are proportional to holdings.

Hold longer - More time = more trades = more fees.

Support active tokens - Higher volume means more fees generated.

Tax Considerations

Holder rewards may be taxable income. Consult a tax professional for your jurisdiction. Spawned provides transaction history for your records.