💰Pool Distribution

With Fuul, you can allocate a fixed reward pool among participants based on different criteria. Instead of rewarding users individually for each action they complete (as in Reward per Action), Pool Distribution determines how the total reward pool is divided among all eligible participants. This approach ensures that incentives are distributed proportionally, based on predefined metrics.

For example:

• If you set a $10,000 reward pool for a referral program, Pool Distribution determines how that total amount is shared among users rather than assigning fixed rewards per referral.

Fuul offers multiple ways to distribute rewards from a pool:

Volume-Based Distribution

Rewards are allocated based on the volume of activity each participant contributes. This is ideal for incentivizing high engagement.

Example:

• In a referral program, users who generate more referred transactions will receive a higher share of the reward pool.

• In a trading incentive campaign, users who execute larger trade volumes will get a larger portion of the rewards.

Revenue-Based Distribution

Rewards are distributed based on the revenue generated by each participant. This method ensures that the highest contributors receive the largest share of the pool.

Example:

• In a DeFi protocol, liquidity providers (LPs) who generate more trading fees through their liquidity contributions receive a greater portion of the rewards.

• In an affiliate program, referrals that result in higher-value transactions receive a larger percentage of the incentive pool.

Conversion Event-Based Distribution

Rewards are allocated based on specific actions or milestones completed by participants.

Example:

• In a staking rewards program, users who stake a token for at least 30 days share a reward pool.

• In a community growth campaign, users who complete tasks like joining a Discord, following a Twitter account, and referring a friend receive a portion of the reward pool.

Fair Distribution

Pool distribution supports an optional fair distribution mode that uses a square root formula to reduce concentration of rewards among large participants. Instead of distributing purely by contribution size, the square root of each user's contribution is used to calculate their share.

This gives smaller and medium-sized participants a higher relative weight, preventing whales from capturing most of the pool.

Example:

• Without fair distribution: A user with 90% of total volume receives ~90% of the pool.

• With fair distribution: The same user receives a smaller share because the square root compresses large values, giving other participants proportionally more.

✅ Best for: Programs that want to encourage broad participation and avoid rewards being dominated by a few large contributors.

Tiered Rewards (Tiers-Based Distribution)

Users are placed into different tiers based on their level of activity, and each tier receives a different share of the total reward pool.

Example:

• In a liquidity incentives program:

  • Users providing $1,000 - $10,000 in liquidity receive 10% of the pool.

  • Users providing $10,000 - $50,000 receive 25%.

  • Users providing $50,000+ receive 50%.

• In a referral campaign:

  • Users with 1-5 referrals receive a small share of the pool.

  • Users with 6-20 referrals receive a medium share.

  • Users with 20+ referrals receive a large share.