# Ecosystem Rewards Instead of the traditional centralized "extraction model," OnNexus operates on a strict Proof-of-Contribution philosophy. Every trade, liquidity deposit, and ecosystem expansion effort is recognized and quantified. To achieve this, OnNexus operates a structured incentive framework designed to reward long-term engagement through our native reward asset: DD Token. *** #### Objectives The OnNexus Rewards Program is designed to: * Deterministic Incentives: Strictly rewarding verified Runes-BTC trading volume and active market-making. * Sovereign Settlement: Zero-trust, direct distribution to non-custodial V1 wallets, ensuring absolute Sovereign Premium. * Structural Liquidity: Deepening capital density through a direct economic loop between LPs and Traders, eliminating inflationary marketing mechanics. *** #### Reward System Overview The core of the program is the DD Token distribution system. Users earn DD Tokens by completing specific tasks across two modules: Trade-to-Earn Traders are systematically rewarded in $DD tokens based on the transaction fees incurred during their trading activities. Calculation Formula: The exact amount of $DD tokens distributed to a trader is calculated by taking 20% of the Total Fee, multiplying that figure by 12.5%, and finally dividing that resulting value by the real-time $DD Market Price. Variable Definitions: * Total Fee: The aggregate transaction fee paid by the trader, strictly denominated in BTC. If fees are paid in a non-BTC asset, the system dynamically converts this to a BTC value using the asset's average price at the time of the transaction. * Platform Fee Ratio: The proportion of the actual fee captured by the platform relative to the Total Fee. * DD Market Price: Denominated in BTC, determined by the real-time asset price on DotSwap On Nexus at the exact moment of transaction confirmation. ### LP Rewards Liquidity Providers receive $DD token allocations proportional to their specific contribution to a transaction's market-making fees. Calculation Logic: The $DD token allocation for an individual LP is determined by taking the base transaction reward (calculated identically to the trader reward: 20% of the Total Fee multiplied by 12.5%, divided by the $DD Market Price) and multiplying it by the individual LP's proportional share of the trade. This share is defined as the specific fee earned by that individual LP divided by the Total LP Fee generated from that transaction. Variable Definitions: * Total LP Fee: The aggregate sum of fees earned by all participating LPs for a specific transaction. * Individual LP Fee: The specific fee amount captured by a single Liquidity Provider for their share of that transaction. * *Note: Total Fee, Platform Fee Ratio, and DD Market Price follow the exact same definitions as outlined in Module 1.* #### System Constraints & Operational Rules * Supported Trading Pairs: The reward protocol is strictly limited to Runes-BTC trading pairs. Transactions involving any other pairs will not generate $DD rewards. * Distribution & Settlement: Reward allocations are strictly processed and distributed to the user's V1 Wallet only after the transaction is fully confirmed on-chain. Accrued rewards are permanent and do not carry an expiration date. * Minimum Threshold: All calculated reward values are rounded down. If the calculated allocation is strictly less than 0.0001 $DD, the reward is nullified and will not be distributed. * Architecture Limitations: Single-sided liquidity pools are temporarily excluded from LP rewards. Support for this architecture will be implemented in subsequent protocol upgrades. Specific redemption options will be announced by the On Nexus team. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.on.nexus/yield-economics-and-amm-design/rewards.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.