Cred Share

Curators play a vital role in the Phi Protocol ecosystem by helping users and contributors understand which Creds are valuable. They can earn rewards through two main mechanisms:

  • Earning a portion of mint fees for the Creds they've invested in.

  • Profiting from buying shares at a lower price and selling them at a higher price.

Buying and Selling Shares

  • The protocol charges a 5% royalty fee for buying and selling signals (shares).

  • The maximum number of shares for a Cred is 100.

  • After buying shares, there's a 12-hour lockup period before they can be sold.

Bonding Curve

The Phi Protocol uses a bonding curve to determine the price of shares based on the current supply. This creates a dynamic pricing model where early investors can potentially profit as more people buy in. links

Reward Distribution

  1. Rewards are distributed when the distribute function is called.

  2. Curators only receive rewards if they hold a position at the time of distribution.

  3. The distribution process includes:

    • Checking the total balance for the Cred

    • Retrieving curator addresses

    • Calculating share counts and total shares

    • Applying a 1% royalty fee for the user who triggers the distribution

    • Calculating individual rewards based on share ownership

    • Distributing rewards to curators via the Phi Rewards contract

🚨 Important Notes

  • While both boost and share buy/sell options exist for Creds, the boost feature is not yet implemented.

  • The typical strategy is to buy shares in Creds likely to have NFTs minted, wait for fees to accumulate, trigger distribution, and then sell.

  • Cred creators can choose the initial purchase amount.

  • Creators can also set their royalty percentage.

  • Rewards are only distributed when the distribute function is called. No fees are received without distribution.

Investment Strategy

When deciding which Cred shares to buy, consider:

  • The verifier information

  • The Cred's description

  • Associated artwork settings

Until the boost feature is implemented, the number of shares purchased can be a significant factor in a Cred being featured.

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