Docs/How It Works

How It Works

CoinRewards turns creator fees into automatic holder rewards. Here's the complete flow.

The Reward Flow

1. Fees Flow to Vault

When anyone buys or sells a CoinRewards-enabled token on pump.fun, the 1% creator fee is automatically sent to the CoinRewards vault instead of the creator's personal wallet.

2. SOL Accumulates

Throughout the day, the vault accumulates SOL from all trades. The more volume a token has, the larger its reward pool grows.

3. Daily Snapshot

Every 24 hours, a snapshot is taken of all token holders and their balances. This determines who receives rewards and how much.

4. Automatic Distribution

SOL rewards are sent directly to each holder's wallet, proportional to their token holdings. No claiming, no staking—just hold and earn.

Reward Calculation

Your share of the rewards is based on what percentage of the total token supply you hold:

Your Reward = Total Pool × (Your Balance / Total Supply)

Example:

  • • Total reward pool: 10 SOL
  • • Total token supply: 1,000,000 tokens
  • • You hold: 50,000 tokens (5%)
  • Your reward: 0.5 SOL

Key Points to Remember

Hold at Snapshot Time

You must hold tokens at the time of the daily snapshot to qualify for rewards. The exact time is shown on the token page.

Minimum Payout Threshold

To receive rewards, your calculated payout must be at least 0.01 SOL. This prevents dust attacks and saves on transaction fees. Sub-threshold amounts are collected as "Dust Revenue" and added to the reserve fund.

No Lock-Up Required

Unlike staking protocols, your tokens remain fully liquid. You can trade anytime—just be aware of the snapshot timing.

Direct to Your Wallet

Rewards are airdropped directly to the same wallet holding your tokens. No claiming UI, no extra transactions needed.

Why This Model?

Traditional memecoins have a fundamental problem: creator fees extract value from holders with no benefit. CoinRewards flips this model by returning those fees to the community.

Traditional Model ❌

  • • Creator takes all fees
  • • No benefit to holders
  • • Pump and dump incentive

CoinRewards Model ✓

  • • Fees go to holders
  • • Holding is rewarded
  • • Aligned incentives

This creates a positive feedback loop: more holders → more volume → more rewards → more holders. It's sustainable tokenomics that benefits everyone.

Want to enable rewards for your token?

It takes less than 5 minutes to set up CoinRewards for a new token.

Quick Start Guide