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

# Holder Rewards

Streamlock redistributes **40% of all trading fees** collected during unlock windows directly to token holders as SOL. Hold through the unlock, earn from those who sell.

***

## Overview

Every time a token completes a milestone cycle (GRIND → FREEZE → UNLOCK), trading fees collected during the unlock window are split four ways:

| Share   | Recipient     | How                                                                                                 |
| ------- | ------------- | --------------------------------------------------------------------------------------------------- |
| **40%** | Token holders | Merkle vault — claim SOL on the token page                                                          |
| **10%** | Token creator | Direct SOL transfer                                                                                 |
| **30%** | LP providers  | Pro-rata via fee splitter — see [LP Provision](/streamlock-docs/fees-and-economics/lp-provision.md) |
| **20%** | Protocol      | Retained in protocol treasury                                                                       |

This applies to **all** trading fees during the unlock window — both buy fees (3% flat + epoch pressure) and sell fees (50% → 1% decay). The 30% LP cut was carved out of what was previously a 50% protocol share — holder rewards (40%) and creator share (10%) are unchanged.

***

## How It Works

### 1. Accumulate

During the unlock window, every buy and sell generates fees. These are tracked on-chain in the pool's `unlock_fees_collected` field.

### 2. Snapshot

When the unlock window ends, the protocol snapshots all token holders and their balances — including tokens still held in escrow streams (both Locksmith and Streamflow backends). Your balance at the moment the window closes determines your share.

### 3. Distribute

The protocol computes each holder's pro-rata share and creates a **Merkle vault** on-chain, funded with 40% of the total fees. A Merkle root is published so claims can be verified trustlessly.

### 4. Claim

A green banner appears on the token page showing your claimable SOL. Click **Claim** to receive your reward. The protocol covers transaction costs — no gas fee required.

***

## Who Qualifies?

Any wallet holding tokens at the end of the unlock window. This includes:

* Tokens in your wallet
* Tokens in escrow streams — Locksmith (new pools) or Streamflow (legacy / opt-in) — locked positions included

**You do NOT qualify if:**

* You sold all your tokens during the unlock window (balance = 0 at snapshot)
* You never held the token

***

## Incentive Design

The holder rewards system creates a strong incentive to hold through unlock windows:

| Action                  | Outcome                                                            |
| ----------------------- | ------------------------------------------------------------------ |
| **Hold through unlock** | Earn SOL from trading fees (both buyers and sellers fund the pool) |
| **Sell during unlock**  | Forfeit your share; your sell fee goes partly to those who held    |
| **Buy during unlock**   | Your buy fee partly rewards existing holders                       |

This means:

* **Holders are rewarded** for not panicking
* **Sellers fund the rewards** through their sell fees
* **New buyers also contribute** — their buy fees add to the reward pool
* **The reward pool grows** even if few people sell (buy fees still accumulate)

***

## Example

A token completes milestone 2. During the unlock window:

```
Total buy volume:   50 SOL (average 5% fee → 2.5 SOL in buy fees)
Total sell volume:  30 SOL (average 13% fee → 3.9 SOL in sell fees)
Total trading fees: 6.4 SOL

Split:
  Holders (40%):   2.56 SOL  ← Merkle vault
  Creator (10%):   0.64 SOL
  LP providers (30%): 1.92 SOL
  Protocol (20%):  1.28 SOL

You hold 3% of the token supply:
  Your reward: 2.56 × 3% = 0.077 SOL
```

Rewards compound across milestones. A token that goes through milestones 1, 2, and 3 generates three separate reward distributions.

***

## Claiming

1. Visit the token page while connected with your wallet
2. If you have unclaimed rewards, a green **Holder Rewards Available** banner appears
3. Each milestone reward is shown separately with the claimable SOL amount
4. Click **Claim** — the transaction is sent automatically
5. SOL arrives in your wallet within seconds

You can claim at any time — rewards don't expire.

***

## Technical Details

* Rewards are secured by a **Merkle proof** system — the same pattern used by Jupiter airdrops and other major Solana protocols
* Each milestone creates a separate on-chain **AccumulatorVault** PDA
* Double-claiming is impossible (claim status is tracked on-chain via PDA)
* The Merkle root and proofs are computed off-chain and published on-chain for trustless verification

***

## Related

* [Fee Structure](/streamlock-docs/fees-and-economics/fee-structure.md) — Full fee rates and distribution
* [Freeze & Unlock Windows](/streamlock-docs/core-concepts/freeze-and-unlock.md) — How the unlock lifecycle works
* [Selling Tokens](/streamlock-docs/guides/selling-tokens.md) — Sell fee timing strategies