# 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.

{% embed url="<https://www.loom.com/share/d778babfdd7246759a4e51b424ab4fe5?sid=b72a5f1c-6674-4f0e-b215-cf001ecb7a8e>" %}

### 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](https://docs.google.com/spreadsheets/d/1ria3ZBuE2SX0qZHDNGqlrKtbqsi2Oys5bn40Z6Y9muI/edit?gid=0#gid=0)

<figure><img src="/files/mitZ0tTJbGIsi6jNUEXl" alt=""><figcaption></figcaption></figure>

### 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

<figure><img src="/files/09U3UKMXp1GutwbMr6p2" alt=""><figcaption></figcaption></figure>

### 🚨 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.

<figure><img src="/files/VBEfilZbXzqTQAjp511o" alt=""><figcaption></figcaption></figure>

### Investment Strategy

When deciding which Cred shares to buy, consider:

* The verifier information
* The Cred's description
* Associated artwork settings

<figure><img src="/files/e6eYLvDP7EnLVrcrAcnj" alt=""><figcaption></figcaption></figure>

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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