> 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/variable-rewards.md).

# Variable Rewards

Variable rewards scale with the magnitude of the action — the more a user does, the more they earn.

There are two types of variable rewards:

#### **1️⃣ Based on Volume:**

Rewards increase based on the total amount of an action performed.

Example: A trading program where users receive 0.1% of their trading volume as a reward. The more they trade, the more they earn.

#### **2️⃣ Based on Revenue:**

Rewards are calculated based on the revenue a user generates. There are two payout modes:

* **Per unit** — a fixed rate of points or tokens per USD of revenue (e.g., 10 points per $1 in referred fees)
* **Percentage** — a percentage of revenue paid in points or tokens (e.g., 5% of referred fees paid in USDC)

Example: In an exchange affiliate program, a referrer earns rewards proportional to the fees generated by their referred users.

✅ Best for: Programs that want to reward higher-value actions rather than just participation.

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