Cred Share
Last updated
Last updated
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.
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.
Rewards are distributed when the distribute function is called.
Curators only receive rewards if they hold a position at the time of distribution.
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
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.
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.
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.
