Understanding Token Distribution

Key Concepts, Token Economy Management

Key Concepts

Token Distribution is the most important part of building a healthy creator token ecosystem.

  • Tokens are Earned, not Bought - Tokens are distributed to holders based off of on-chain proofs of engagement (ex: holding an NFT, following on Lens). Because tokens are not transferable, they cannot be sold or bought.

  • Weekly Distribution - Tokens are distributed weekly to eligible holders. This allows for a creator to take into account future states of their economy and community.

  • Eligible Holders - Anyone who engages with a creator's web3 ecosystem can be eligible for rewards. The become eligible by holding an NFT, following on Sound.xyz, or any other engagements that Creators add as Rewards to their Token Economy.

  • Biggest Holder = Most Engaged Holder - A holder's token balance directly indicates their engagement within your community. If you're a Creator, your biggest token holder is your biggest fan.

  • Fully On-Chain - Tokens are automatically airdropped to eligible addresses on-chain. This ensures full composability of a token holder community with other web3 protocols or dApps.

Token Economy Management

Token distribution is managed through the Creator Portal. Your Rewards represent the eligible engagements available to your community. You can adjust, update, and edit your Rewards directly in the Creator Portal.

To learn more, visit the Token Rewards section.

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