The Distribution Formula
Each revenue eventdR generates a distribution pool D, which is split across all token holders proportionally.
Step 1 — Calculate the distribution pool:
Worked Example
- You hold 200 tokens
- Total circulating supply S = 5,000 tokens
- α = 0.20, revenue event dR = $1,000
When Your Share Changes
Your per-token payout is not fixed — it moves with circulating supply S. Supply grows when new tokens are minted (because more referrals are generating revenue and earning tokens). As S increases, the per-token payoutD ÷ S shrinks. You hold the same number of tokens, but each token represents a smaller fraction of the total.
Supply shrinks when tokens are burned during exits. As S decreases, the per-token payout D ÷ S grows. Holders who stay while others exit receive a larger share of each future distribution.
Your share is always proportional to total issued supply at the moment of each distribution — it is never locked in or guaranteed at a fixed rate.
Treasury Tokens and Distributions
Treasury tokens held by the founder do not participate in distributions. Only tokens that have been issued — earned through referrals or granted to contributors — receive a share of revenue events. This means the founder’s unallocated treasury does not dilute distributions to contributors.Exit Queue Priority
When token holders are queued for exit, they receive their exit value first from each distribution, before remaining holders receive their pro-rata share. The exit queue is funded directly by the same distribution pool. This means active exits slightly reduce the distribution available to continuing holders during the period the queue is being cleared — but no separate reserve pool is required to fund exits.Distribution Frequency
Distributions happen automatically with every recorded revenue event. There is no batching, no monthly schedule, and no manual claim process. If the business records five revenue events in a single day, five distributions flow to token holders that day.The more revenue the business generates, the more distributions flow to holders. Distributions are not capped. A business that grows from 100,000 MRR sends ten times as much distribution value per event (assuming the same α and token supply). Your tokens are a direct claim on the ongoing productive output of the business.