TIP-20 Rewards

TIP-20 Rewards is a built-in mechanism that allows for efficient distribution of rewards to opted-in token holders proportional to their holdings, while maintaining low gas costs at scale and complying with TIP-403 transfer policies.

Traditional reward mechanisms require tokens to be staked in separate contracts, which fragments user holdings and adds complexity to wallet implementations. TIP-20 Rewards solves this by:

• Built-in Distribution: Rewards are integrated directly into the token contract, no separate staking required
• Opt-in Participation: Users choose whether to participate by setting a reward recipient
• Proportional Distribution: Rewards accrue based on token holdings automatically
• Instant Rewards: Distribute rewards immediately to opted-in holders
• Efficient at Scale: Constant-time updates regardless of the number of token holders
• Policy Compliant: All reward transfers respect TIP-403 transfer policies

Links