# 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="https://2819029275-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FN3SP59WsdH4ATy0OAWIv%2Fuploads%2FKNHNVtdy2gbupynbQDO8%2FCuration_Price_100_-_Google_%E3%82%B9%E3%83%95%E3%82%9A%E3%83%AC%E3%83%83%E3%83%88%E3%82%99%E3%82%B7%E3%83%BC%E3%83%88.png?alt=media&#x26;token=485a62ba-104d-4a74-b7e9-524de1c563b0" 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="https://2819029275-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FN3SP59WsdH4ATy0OAWIv%2Fuploads%2Fqr2IWd0DG3zZcvFhRO9a%2F-_Napkin_AI.png?alt=media&#x26;token=970b480a-6f20-4d03-a897-844594b211ae" 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="https://2819029275-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FN3SP59WsdH4ATy0OAWIv%2Fuploads%2FUhgepA0I9lIdCi4FV8JW%2FTerminal___Phi.png?alt=media&#x26;token=e162d14f-f530-4fbb-9b10-c3d536c6d9ae" 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="https://2819029275-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FN3SP59WsdH4ATy0OAWIv%2Fuploads%2FPkt7yH7xPErcTDR2I4Qb%2F-_Napkin_AI.png?alt=media&#x26;token=39384bb6-477c-4d40-b708-2ba66c7a27e5" 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.