Automatic Distribution System
One of PrintFun's most innovative features is its automated fee distribution system, which ensures that value flows back to token holders rather than being extracted by intermediaries.
How It Works
The automatic distribution system operates through a series of smart contracts that collect, process, and distribute trading fees without requiring any manual intervention.
Step-by-Step Process
Fee Collection
When a trade occurs, the trading fee (1%, 2%, 4%, or 6%, depending on the token's fee tier) is automatically collected.
Fee Splitting
The collected fee is split according to the predefined distribution: 75% allocated to token holders, 25% allocated to the protocol.
Accumulation
Fees accumulate in a distribution pool until the next distribution cycle.
Distribution Cycle
Every 10 minutes, the system processes the accumulated fees.
Threshold Check
The system checks if the accumulated fees exceed the minimum threshold for distribution.
Proportional Allocation
If the threshold is met, rewards are distributed proportionally to token holders based on their holdings.
Transaction Execution
The system automatically executes the transactions to send SOL to each eligible holder's wallet.
Record Keeping
All distributions are recorded on-chain for transparency and verification.
Distribution Frequency
Distributions occur automatically every 10 minutes, provided that the accumulated fees exceed the minimum threshold.
This frequent distribution schedule ensures that token holders receive their rewards promptly and regularly. The exact timing may vary slightly due to network conditions and transaction processing times.
Minimum Threshold
To ensure efficient use of network resources, distributions only occur when the accumulated fees exceed a minimum threshold.
This threshold is dynamically adjusted based on network conditions and the number of token holders to optimize the distribution process, balancing gas costs and reward value.
Proportional Distribution
Rewards are distributed proportionally to token holders based on their holdings at the time of distribution. The formula for calculating an individual holder's reward is:
Holder Reward = (Holder's Token Balance / Total Token Supply) × Total Rewards for Distribution
Example Calculation
If:
- • You hold 1,000 tokens
- • The total token supply is 100,000 tokens
- • The total rewards for distribution are 0.5 SOL
Your reward would be:
Automatic Delivery
One of the key advantages of PrintFun's distribution system is that rewards are automatically sent directly to holders' wallets. There is no need to:
Manually claim rewards
Pay gas fees for claiming
Monitor distribution schedules
Interact with complex staking contracts
This "set it and forget it" approach ensures that all token holders, regardless of their technical expertise, can benefit from the rewards system.
Protocol Fee Allocation
The 25% of trading fees allocated to the protocol is further divided:
To $PRINT Token Holders
2/3 of protocol fee is distributed to $PRINT token holders
For Operations
1/3 of protocol fee is used for operational expenses and ecosystem growth
Viewing Your Rewards
You can view your accumulated rewards in several ways:
Token Detail Page
Visit your token's detail page on PrintFun to see your total rewards received.
Wallet History
Check your wallet's transaction history to see incoming SOL transactions from the PrintFun distribution system.
On-Chain Explorer
Use a Solana explorer like Solscan or Solana Explorer to view all transactions related to your wallet address.
Benefits of Automatic Distribution
Immediate Value
Rewards are distributed in SOL, providing immediate and tangible value.
No Lock-ups
Token holders receive rewards without having to lock up their tokens.
No Manual Claims
Rewards are automatically sent to holders' wallets without requiring manual claims.
Transparent Process
The entire distribution process is transparent and verifiable on-chain.
Regular Frequency
The 10-minute distribution cycle ensures frequent reward delivery.
Proportional Fairness
Rewards are distributed fairly based on token holdings.
Gas Efficiency
The system is optimized to minimize gas costs for distributions.
Frequently Asked Questions
Do I need to stake my tokens to receive rewards?
No, you automatically receive rewards just by holding the tokens in your wallet.
What happens if I buy or sell tokens right before a distribution?
Your rewards are based on your token balance at the exact moment of distribution. If you buy tokens just before a distribution, you'll receive rewards proportional to your new balance.
Can I opt out of receiving rewards?
There is no way to opt out. As long as you hold tokens, you will automatically receive rewards.
Are the rewards taxable?
Please consult with a tax professional regarding the tax implications of cryptocurrency rewards in your jurisdiction.
What happens if the distribution transaction fails?
The system is designed with retry mechanisms. If a distribution transaction fails, the system will attempt to resend it in the next distribution cycle.