Holder rewards and the weekly lottery
Some Instant tokens pay the people who hold them. When a creator adds a holder tax at launch, part of every trade goes to holders as daily rewards and a weekly lottery for that token.
Holder rewards and the weekly lottery run on the Robinhood Chain testnet until an external security audit is complete, then move to mainnet.
Where the money comes from
The holder tax is 1% or 2% of every buy and sell, on top of the trade fee. It is fixed for the token's life and paid in the pair currency: ETH, or the token the market is paired with.
| Tax option | To holders | To buyback and burn |
|---|---|---|
| Holder rewards | All of it | None |
| Rewards and burn | Half | Half |
Of the part that goes to holders:
- 90% is shared out each day as holder rewards.
- 10% goes into that token's weekly lottery pot.
Only Instant tokens can carry a holder tax. A token page with a tax shows a Holder rewards card and a weekly lottery card. For the full fee picture, see Fees and burns.
Holder rewards
Who earns
| Rule | Detail |
|---|---|
| Day | A fixed 24-hour day, in UTC |
| Minimum | Your average holding over the day is worth at least $100 |
| Your share | In proportion to how much you held, and for how long |
| Payout | Added to your claim once you are owed at least $20 |
- Your average is weighted by time. Holding $200 for half the day and nothing for the other half averages $100.
- Below $20, nothing is lost. Your amount carries forward until it reaches $20.
- What you have earned stays yours, even if you sell or drop below the minimum later.
- If nobody qualifies on a day, that day's holder share rolls forward.
Addresses that never earn
Rewards and lottery entries are for real holders, so these addresses are left out:
- the token's own contract, and burn addresses
- the Uniswap contracts that hold the pool's tokens
- Honkfun's own contracts, such as the factory, lockers, hook, and the rewards and buyback contracts
If a day's prices or this list cannot be confirmed, Honkfun holds that day's rewards.
Claiming
- Open the Rewards page, or the Holder rewards card on the token page.
- Check the rows for each token: From holder rewards, From the weekly lottery and Already claimed.
- Press Claim. You pay the network fee yourself.
Rewards are updated once a day. Unclaimed amounts keep adding up, so you can wait until a claim is worth the fee. A claim always pays your own wallet, whoever submits it.
Claims can never pay out more than the token's tax has funded, and Honkfun cannot move the rewards money.
The weekly lottery
Every token with a holder tax runs its own lottery each week.
| Rule | Detail |
|---|---|
| Week | Monday to Sunday, UTC |
| Pot | The 10% lottery share from that week's seven days, plus anything rolled in |
| To enter | Hold at least $500 of the token at the very end of the week |
| Your chances | Points for value held over the week: $1 held for one day is 1 point |
| Winners | Ten different wallets, drawn at random, weighted by points |
| Prizes | Ten equal prizes, each a tenth of the pot |
If fewer than ten wallets can enter, the unfilled prizes roll into next week's pot. Prizes are added to your holder rewards claim, in the From the weekly lottery row.
How the draw stays fair
- A week is drawn only after all seven of its days are worked out.
- The entry list and everyone's points are set and published before the random seed is chosen.
- The same seed and entry list always pick the same winners.
- A drawn week can never be drawn again, and weeks are drawn in order.
For now, a Honkfun admin submits each week's random seed, and Honkfun plans to replace this with verifiable on-chain randomness before mainnet. See Risk disclosures.
Creators earn separately from the trade fee: see Creator rewards.