> For the complete documentation index, see [llms.txt](https://stonkfun.gitbook.io/stonkfun-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://stonkfun.gitbook.io/stonkfun-docs/launching/reward-launch.md).

# Reward launch (reward coin)

A reward launch pays holders instead of the creator. There is no creator fee position at all, and the creator earns as a holder like everybody else.

## What it is

A Token-2022 mint carrying an immutable transfer tax, trading on a 1% pool.

| Property               | Value                                |
| ---------------------- | ------------------------------------ |
| Transfer tax           | 1% by default, or 3% by choice       |
| Pool tier              | 1%                                   |
| Liquidity split        | 90% platform, 10% Ecosystem Flywheel |
| Creator position       | None                                 |
| Total trading friction | 2% at the default rate               |

## The transfer tax

The tax is withheld by the token program itself on every transfer, on any venue. That covers buys and sells on the StonkFun pool, swaps routed through Jupiter or any other aggregator, wallet-to-wallet transfers, and transfers into and out of any other protocol.

There is nothing to opt out of and nowhere to route around it.

### Choosing the rate

Two rates are offered, and no others are accepted:

| Rate         | Total friction      | Character                        |
| ------------ | ------------------- | -------------------------------- |
| 1% (default) | 2% with the 1% pool | Friendliest to traders           |
| 3%           | 4% with the 1% pool | Triples the holder reward stream |

Over the API this is `rewardTaxBps: 100 | 300`, and the response echoes it as `transferFee.bps`. The choice is signed into your quote and cannot be changed once the mint exists.

{% hint style="warning" %}
Because the tax is part of the mint, a dev buy on a reward launch delivers `devBuy.netTokens` rather than `devBuy.tokens`. Use the Token-2022 program for this token's accounts.
{% endhint %}

## How holders actually get paid

The tax accumulates inside recipient token accounts as withheld amounts. The platform then collects it, swaps it into the quote token, and distributes it pro-rata across eligible holders.

Holders are paid in the quote token, meaning the asset the launch is paired against, not in the launched token. Full detail: [Holder rewards](/stonkfun-docs/earning/holder-rewards.md).

## Who is eligible

A wallet needs to hold at least **`$20`** of the launched token to receive rewards at all. That bar is set in the units a buyer actually thinks in, it makes splitting a position across wallets strictly losing, and it keeps distributions off airdrop dust.

There is also a floor on how small a single payout can be, so the platform is not paying out fractions of a cent.

If the token's own price cannot be read at that moment, the holding bar is not applied. A price outage widening a distribution to some small holders is harmless; freezing payouts because a feed blinked is not.

## The flywheel share

Ten percent of a reward launch's locked liquidity goes to the Ecosystem Flywheel, whose Fee Key earns 10% of the pool's fees. That revenue is pooled across every reward launch and spent buying back and burning the platform's top tokens by market cap. See [The Ecosystem Flywheel](/stonkfun-docs/earning/ecosystem-flywheel.md).

## Availability

Reward launches may be restricted to admins at times, so that the launch path can be exercised with real launches before the option is opened to everyone. When that restriction is on, the fee-model choice does not appear on the launch page and the API answers `403` for `mode: 'reward'`.

Reward tokens that already exist are never affected by this. Their badges, panels, harvesting and distribution all keep running as normal.


---

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