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Every time a customer pays, Vibe Token does two things simultaneously: it mints tokens for whoever referred that customer (if applicable), and it distributes a share of the revenue to every current token holder. There is no monthly settlement, no batching delay, and no manual trigger. The revenue event itself is the distribution event.

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The Distribution Formulas

Step 1 — Calculate the total distribution pool:
Step 2 — Distribute pro-rata across all issued tokens:

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What Counts as “Issued” Supply

S includes only tokens that have been actively granted to contributors or earned through referrals. Tokens sitting in the founder’s treasury — unissued, ungranted — are inert. They do not count toward S, and they do not receive any share of distributions. This distinction matters: if the founder holds 10,000 treasury tokens and has issued 5,000 to contributors, S = 5,000 — not 15,000.

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Worked Example

A customer pays $500. The founder’s revenue share is α = 0.20. There are 5,000 tokens in circulation.
The remaining $400 (the 1 - α portion) stays with the business as operating revenue.

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Exit Queue Priority

When one or more contributors are waiting in the exit queue, their pending payouts are funded first from each distribution before the remainder flows to active holders. If D = $100 and $60 is owed to queued exits, the queued exits receive their $60 and the remaining $40 is distributed pro-rata among current holders. The queue always takes precedence. See Token Exit for full queue mechanics.

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α Is Permanent

The founder sets α once at launch. It cannot be raised, lowered, renegotiated, or voted on after the fact. This permanence is a feature, not a limitation. Contributors can model their future payouts with certainty. There is no scenario where the founder gradually reduces α to claw back revenue share as the business grows. The contract is immutable. Choosing α at launch is therefore a significant decision. Common starting points range from 0.10 (10%) to 0.30 (30%), depending on how much of the business’s growth the founder attributes to contributor activity.

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Distribution Frequency

Distributions happen automatically with each revenue event — not on a schedule. A business with daily transactions distributes daily. A business with monthly invoices distributes monthly. The cadence is entirely determined by how revenue flows into the business.
Treasury tokens held by the founder receive no distributions. The founder’s economic return is the retained revenue: (1 - α) × dR per event. Keeping treasury tokens unissued does not increase the founder’s distribution share — it simply keeps those tokens available for future grants.