> ## Documentation Index
> Fetch the complete documentation index at: https://pairdocs.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Holder Rewards: Receive Fees Proportional to Holdings

> Token holders in a PAIR receive a share of trading fees proportional to their holdings, distributed from the holder rewards allocation.

Holder rewards give token holders a direct stake in the trading activity of the PAIR they hold. When a PAIR launcher allocates a portion of creator fees to the holder rewards pool, that portion is distributed to token holders proportional to how much of the PAIR token each address holds. The more you hold, the greater your share of every distribution.

## How Holder Rewards Work

Every trade on a PAIR token generates fees. When the holder rewards allocation is non-zero, that slice of fees flows into the holder rewards pool. At distribution time, the pool is split across all token holders pro-rata — meaning each holder receives a share equal to their percentage of the total token supply held at that moment.

### Example

If the holder rewards allocation is set to **20%** and the PAIR token generates **1 SOL** in trading fees:

```
1 SOL in trading fees × 20% holder rewards allocation = 0.2 SOL into the rewards pool
```

If you hold **5%** of the total token supply, you receive **5%** of that 0.2 SOL — 0.01 SOL — in that distribution cycle.

<Warning>
  Reward amounts depend on trading volume and your proportional share of the token supply. Neither is guaranteed. As the circulating supply changes and trading activity fluctuates, your actual rewards will vary.
</Warning>

## Pro-Rata Distribution

Pro-rata means your reward share is proportional to your holdings relative to all other holders. There is no minimum holding requirement to qualify for rewards, but smaller holdings naturally receive a smaller share of each distribution.

The distribution snapshot — the moment at which the protocol records who holds what — is tied to the distribution trigger. Tokens acquired after a snapshot is taken may not qualify until the next distribution cycle.

<Note>
  The exact snapshot and distribution trigger mechanism — whether rewards are distributed per-trade, on a periodic schedule, or on-demand — is part of the active development roadmap. This page will be updated once the behaviour is confirmed and live.
</Note>

## Claiming Your Rewards

<Note>
  Whether holder rewards are delivered as automatic airdrops to your wallet or require you to submit a claim transaction is to be confirmed. The claim or receipt experience will be documented here once the mechanism is live.
</Note>

Rewards are designed to be straightforward to receive. Regardless of the final mechanism, you will not need to take complex action to access rewards you have earned — the protocol handles distribution on-chain.

## Holder Rewards vs. Buybacks

Both holder rewards and buybacks direct a portion of trading fees back to the community, but they deliver value differently. Understanding the distinction helps you evaluate a PAIR before you buy in.

<Tabs>
  <Tab title="Holder Rewards">
    * Fees are distributed **directly** to your wallet
    * You receive value proportional to your current holdings
    * The benefit is immediate and claimable
    * You need to **hold the token** to receive anything
    * Rewards do not directly affect the token's market price
  </Tab>

  <Tab title="Buybacks">
    * Fees are used to **purchase the token from the market**
    * All holders benefit indirectly through buy-side price support
    * The benefit is reflected in market dynamics, not your wallet balance
    * You benefit whether you are an active holder or a recent buyer
    * Token price impact depends on volume and market conditions
  </Tab>
</Tabs>

<Tip>
  A PAIR with a high holder rewards allocation suits holders who want direct, measurable returns from their position. A PAIR with a high buyback allocation suits those who prefer market price support and are comfortable with indirect benefits.
</Tip>

## Multiple Creators and Holder Rewards

Holder rewards are distinct from the creator payout portion of fees. Even if a PAIR has multiple X creator accounts sharing the creator fee split, the holder rewards pool is separate and distributed solely to token holders — not to creators. There is no overlap between the two.

## Related Pages

<CardGroup cols={2}>
  <Card title="Fee Allocation" icon="sliders" href="/concepts/fee-allocation">
    Configure your holder rewards, buyback, and creator payout percentages before launch.
  </Card>

  <Card title="Fee Routing" icon="route" href="/protocol/fee-routing">
    See how fees flow from a trade through the on-chain fee router to each destination.
  </Card>
</CardGroup>