> For the complete documentation index, see [llms.txt](https://dca-1.gitbook.io/dca-white-paper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dca-1.gitbook.io/dca-white-paper/dca-whitepaper/technical/rewards-and-incentives.md).

# Rewards & Incentives

> *"The Co-Builder model transforms users into active co-builders, aligning individual incentives with DCA's long-term protocol growth."*

## Co-Builder Reward Mechanism

The Co-Builder Reward Mechanism incentivizes participants to contribute to the growth and expansion of the DCA ecosystem. Unlike traditional referral structures, the Co-Builder Reward evaluates the **overall contribution of a participant's network structure** and distributes rewards proportionally according to the economic activity generated within the network.

Rewards are distributed based on network contribution, staking activity, and overall ecosystem performance.

### Co-Builder Reward Formula

The Co-Builder Reward (CBR) is calculated as follows:

```
CBR = Personal Staking Value × (Co-Builder Value / Total Protocol Co-Builder Value) × Total Protocol Staking Reward
```

| Term                                | Explanation                                                                                          |
| ----------------------------------- | ---------------------------------------------------------------------------------------------------- |
| **Personal Staking Value**          | (Personal staking amount × 0.001%) + 0.9                                                             |
| **Co-Builder Value**                | After excluding the largest network branch, the staking amounts of all remaining branches are summed |
| **Total Protocol Co-Builder Value** | The aggregate Co-Builder Value across the entire protocol network                                    |
| **Total Protocol Staking Reward**   | The total staking rewards generated across the protocol within the reward cycle                      |

### Additional Rules

* If personal staking ≥ 10,000 USDT, the Personal Staking Value is capped at 1
* Starting from the second community layer, staking amounts are calculated with a 10% reduction per layer
* Rewards are calculated daily at approximately 18:00 (GMT+8)

***

## Referral Reward

Referrers receive **10% of the staking rewards** generated by users they directly invite. This mechanism incentivizes ecosystem growth by aligning user expansion with ongoing reward distribution.

***

## Bond Referral Reward

In addition to staking rewards, the protocol also provides incentives for bond participation:

* When a participant's personal staking amount reaches **1,000 USDT or more**, they become eligible to receive bond referral rewards from users they have directly invited
* Referrers receive **3% of the tokens** obtained through bonds purchased by their directly referred participants
* To maintain stability within the token economy, these rewards are distributed through a **5-day linear vesting schedule**

***

## Energy Point Mechanism

The DCA protocol incorporates an **Energy Point mechanism** to regulate reward distribution and maintain ecosystem sustainability:

* Energy Points accumulate whenever participants generate rewards within the protocol
* Each participant has a maximum Energy Point capacity equal to **five times their fixed DCA staking amount**
* When Energy Points are insufficient, participants may replenish them by burning DCA tokens at a **1:5 ratio**
* This mechanism helps balance reward distribution, burn away DCA tokens, and introduces additional token utility within the ecosystem


---

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