Token Economics

Understand the token economics and reward distribution model of CeloRefer

Token Economics

Reward Distribution

For every action worth 1 cUSD:

1. Platform Fee: 0.15 cUSD (15%) → Treasury
2. Remaining: 0.85 cUSD → Referrer Rewards

Example (Bronze Tier User):

• Direct Referrer (Level 1): 0.85 × 5% = 0.0425 cUSD
• Parent Referrer (Level 2): 0.85 × 2% = 0.017 cUSD
• Platform keeps: 0.15 cUSD
• User/Partner keeps: ~0.7905 cUSD

Example (Platinum Tier User):

• Direct Referrer (Level 1): 0.85 × 8% = 0.068 cUSD
• Parent Referrer (Level 2): 0.85 × 3.5% = 0.02975 cUSD
• Platform keeps: 0.15 cUSD
• User/Partner keeps: ~0.75225 cUSD

Dynamic Reward Rates

Reward rates are based on user badge tiers:

Badge Tier	Referrals	Level 1 Reward	Level 2 Reward
🥉 Bronze	0+	5%	2%
🥈 Silver	5+	6%	2.5%
🥇 Gold	15+	7%	3%
💎 Platinum	50+	8%	3.5%

Badge System

Users earn badges based on their referral performance:

• Badges unlock higher reward rates
• Badge tier displayed in reputation NFTs
• Visual representation of user achievement
• Gamification encourages viral growth

Badge Requirements

Badge	Minimum Referrals	Maximum Referrals
Bronze	0	4
Silver	5	14
Gold	15	49
Platinum	50	∞

Quest Rewards

Quests provide additional incentive for user engagement:

• Set target referral counts
• Offer cUSD rewards for completion
• Track user progress automatically
• Claim rewards on completion
• Drive specific user behaviors

Example Quest Structure

{
  name: "First 5 Referrals",
  targetReferrals: 5,
  rewardAmount: BigInt(50 * 10**18), // 50 cUSD
  startTime: Math.floor(Date.now() / 1000),
  endTime: Math.floor(Date.now() / 1000) + 30 * 24 * 60 * 60 // 30 days
}

Seasonal Competitions

Seasonal competitions create time-bound engagement spikes:

• Define season duration and prize pool
• Track user performance during season
• Distribute rewards to top performers
• Create urgency and engagement spikes
• Build community around leaderboards

Example Season Structure

{
  name: "Summer Challenge",
  description: "Summer referral competition",
  startTime: Math.floor(Date.now() / 1000),
  endTime: Math.floor(Date.now() / 1000) + 60 * 24 * 60 * 60, // 60 days
  totalPrizePool: BigInt(1000 * 10**18), // 1000 cUSD
  winnersCount: 10
}

Sustainability Model

Revenue Streams

• Platform fees: 15% of all action values
• Quest rewards: Funded by platform or partners
• Season prize pools: Funded by platform or partners
• Partner subscriptions: Tiered subscription model

Cost Structure

• Smart contract gas fees: Ethereum transaction costs
• Development and maintenance: Ongoing platform costs
• Marketing and growth: User acquisition expenses
• Community rewards: Incentive programs

Economic Balance

• Platform fees fund ecosystem development
• Quest rewards drive user engagement
• Season prize pools create competition
• Partner subscriptions for white-label features

Token Standards

cUSD (Celo Dollar)

• Standard: ERC-20 compatible
• Decimals: 18
• Usage: Primary reward token and platform currency

Reputation NFTs

• Standard: ERC-721 compatible
• Properties: Soulbound (non-transferable)
• Usage: User reputation and achievement tracking

Fee Structure

Platform Fees

• Default rate: 15% of action value
• Destination: Platform treasury

Partner Fees

• Subscription tiers: Free, Basic, Pro, Enterprise
• Features: Vary by tier
• Revenue sharing: With platform

User Fees

• Registration: Free
• Reward claiming: Standard gas fees
• NFT minting: Standard gas fees

Incentive Alignment

For Users

• Direct financial rewards for referrals
• Status and recognition through badges/NFTs
• Competition through quests and seasons

For Partners

• Ready-to-use referral infrastructure
• Revenue sharing through platform fees
• Brand-specific customization options

For Platform

• Sustainable revenue through fees
• Network effects through viral growth
• Data insights through analytics

Economic Security

Anti-Spam Measures

• Minimum action value requirements
• Rate limiting on registrations
• Verification mechanisms for quality referrals

Fraud Prevention

• Multi-level referral validation
• Badge tier progression requirements
• Automated anomaly detection

Risk Mitigation

• Diversified revenue streams
• Adjustable fee structures
• Emergency pause mechanisms