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money-billsCred 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.

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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.

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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. linksarrow-up-right

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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

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🚨 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.

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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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