> For the complete documentation index, see [llms.txt](https://docs.fuul.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fuul.xyz/core-concepts/incentive-payouts/pool-distribution.md).

# Pool Distribution

You define a fixed total budget, and at the end of the period each participant receives a share proportional to their contribution relative to all others. Choose whether the pool goes to end users or referrers.

The pool is divided based on one of three metrics:

### 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.

### Attribution Count

Rewards are allocated based on the **number of times each participant performed a qualifying action**. Each conversion a user triggers adds to their count, and their share of the pool is proportional to how many conversions they contributed relative to the total.

Example:

* In a referral program with a $5,000 pool, if Alice refers 6 users and Bob refers 4 users (10 total conversions), Alice receives 60% ($3,000) and Bob receives 40% ($2,000).
* In a quest campaign where users earn points for completing on-chain actions (e.g., swapping, bridging, staking), a user who completes 5 qualifying actions gets a larger share than one who completes 2 — even if both crossed the eligibility threshold.

{% hint style="info" %}
Pool distribution can be combined with tiers to give different user groups different rates or multipliers. See [Tiers & Multipliers](/core-concepts/tiers-and-multipliers.md).
{% endhint %}