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Copy file name to clipboardExpand all lines: docs/pages/coins/contracts/rewards.mdx
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@@ -32,19 +32,19 @@ V4 coins generate rewards through a sophisticated automated system that operates
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When users trade coins, the Uniswap V4 hook automatically:
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1.**Collects LP fees** (3% standard Uniswap V4 fees) from all liquidity positions
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1.**Collects LP fees** (1% total fees for v2.2.0+) from all liquidity positions
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2.**Splits fees** into two parts:
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-**33.33% for LP Rewards** - Used to create new liquidity positions
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-**66.67% for Market Rewards** - Distributed to stakeholders
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-**20% for LP Rewards** - Used to create new liquidity positions
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-**80% for Market Rewards** - Distributed to stakeholders
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### LP Reward Mechanism: Liquidity Preservation
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The 33.33% allocated to LP rewards doesn't go to liquidity providers directly. Instead, it's used to **mint new single-sided liquidity positions** that are strategically placed outside the current trading range:
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The 20% allocated to LP rewards doesn't go to liquidity providers directly. Instead, it's used to **mint new single-sided liquidity positions** that are strategically placed outside the current trading range:
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-**Token0 fees** → New position created **above** current price (inactive until price moves up)
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-**Token1 fees** → New position created **below** current price (inactive until price moves down)
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These positions are essentially **locked and burned** - they don't earn future fees but serve a crucial purpose: **maintaining pool liquidity**. Instead of extracting 33.33% of fees from the pool, this mechanism keeps them as permanent liquidity, ensuring the pool becomes deeper and more liquid over time.
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These positions are essentially **locked and burned** - they don't earn future fees but serve a crucial purpose: **maintaining pool liquidity**. Instead of extracting 20% of fees from the pool, this mechanism keeps them as permanent liquidity, ensuring the pool becomes deeper and more liquid over time.
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### Market Reward Distribution
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@@ -128,7 +128,7 @@ Content Coin Trading → Fees Collected → Multi-hop Swap → All Recipients Re
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-**Automated Distribution**: Rewards are distributed on every single swap, no manual claiming required
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-**Multi-Hop Conversion**: Automatically converts rewards through intermediate tokens to reach ZORA
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-**Unified Currency**: All recipients receive rewards in the same target currency (ZORA)
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-**Liquidity Preservation**: 33.33% of fees remain in pools as permanent liquidity
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-**Liquidity Preservation**: 20% of fees remain in pools as permanent liquidity
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## Coin Rewards Terminology
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## How It Works: Developer
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### Create Referral Reward
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### Platform Referral Reward
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The Create Referral Reward is paid out to the developer or platform that referred the creator to deploy their coin using Zora's contracts.
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The Platform Referral Reward is paid out to the developer or platform that referred the creator to deploy their coin using Zora's contracts.
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#### Creating a Coin with Rewards
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The `createReferral` address is specified upon coin creation through the factory's deploy function.
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The `platformReferrer` address is specified upon coin creation through the factory's deploy function.
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```solidity
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function deploy(
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string memory name,
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string memory symbol,
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bytes memory poolConfig,
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address platformReferrer, // This is the create referral
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address platformReferrer, // This is the platform referral
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