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
Note: Time-based streaming rewards are planned for a future upgrade. Until then, attempting to create a timed distribution will revert (calling startReward(amount, seconds_) with seconds_ > 0 reverts with ScheduledRewardsDisabled()).