HoodPools documentationProtocol proposal · Updated 8 Sep 2026
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Holder rewards & eligibility

How holder distributions differ from LP fees and staking, and what a live claim needs.

5 min readProposal & demo documentation

Holding is a separate participation path

The proposed holder pot distributes part of net protocol LP revenue to eligible HOODP balances. A holder does not earn another liquidity provider’s fees simply by owning HOODP.

Holder distributions are funded reward allocations. They are not automatic stock dividends, a fixed interest rate, or a claim on the underlying companies paired in the pools.

The demo’s eligibility rule

Only HOODP in the available demo account balance is eligible. Staked HOODP and HOODP deposited into an LP position are excluded. At each simulated epoch, your balance is compared with 4,950,000 fixed example HOODP held by other eligible participants.

The opening holder reward balance is seeded for demonstrating claims. It is not earned by loading the page and cannot be redeemed for actual USDG.

ILLUSTRATIVE ACCOUNTINGDemo holder reward = protocol fee pot × 50% × your wallet HOODP / (4,950,000 + your wallet HOODP)

A production snapshot needs more rules

  • Define an epoch’s exact start and end, snapshot blocks and minimum holding requirements.
  • Choose snapshot or time-weighted eligibility and mitigate short-term balance borrowing.
  • Publish exclusions for treasury, burn, LP and staking custody addresses.
  • Make the allocation data reproducible so independent observers can reconcile the funded pot.
  • Handle reorgs, rounding, unclaimed amounts and corrections with a documented procedure.

How claims would be verified

One proposed approach is an epoch-based Merkle distributor: a claim proves that an address has a specific allocation in a published root. The contract verifies the proof, checks whether the allocation was already claimed and pays only from funded assets.

No such distributor is deployed here. The demo uses a local balance and clears it when claimed. A live implementation must bind claims to a chain, distributor, account and epoch and prevent duplicate payouts.

Claim in the app

Open Rewards and find Holder rewards. Review the amount, then confirm the demo claim. The example USDG enters the available balance and the claimed amount is recorded in local activity. Your HOODP principal is unchanged.