Protocol Rewards

Introduction

At Zora, we are passionate about providing the best experience to create and earn onchain. Protocol Rewards is a split of the Zora fee allowing:

• Creators to monetize their work
• Developers to earn from facilitating coin creation and trading

Rewards escrow contract code

Address

Rewards v1.1 is deployed at the same address on all networks.

0x7777777F279eba3d3Ad8F4E708545291A6fDBA8B

Coin Trading Rewards (V4)

Coin trading rewards are distributed to the creator, create referral, trade referral, protocol, and doppler.

The latest V4 coins use a UniswapV4 hook to collect fees, swap to a backing currency, and distribute rewards to recipients on every swap.

V4 Reward Distribution

Key V4 Features

• Multi-Hop Reward Swapping: Automatically converts rewards through intermediate tokens to reach the final payout currency, which is ZORA.
• Unified Currency Distribution: All recipients receive rewards in the same target currency (e.g., ZORA)

V3 Rewards Distribution (Legacy)

V3 coins use the original reward distribution system with separate currency and coin rewards.

V3 Reward Distribution

Note: V3 rewards are distributed in both the coin and its backing currency separately.

Coin Rewards Terminology

Trade Referral: The platform or address that referred a specific trade/swap of a coin. In V4, this is passed through hook data and can trigger referral rewards.

Create Referral: The platform that referred the creator to deploy the coin. This is set at coin creation time and earns a percentage of all trading fees.

Creator/Payout Recipient: The address designated to receive creator rewards from trading activity. This can be updated by coin owners.

Protocol: The Zora protocol treasury that receives a portion of trading fees.

Doppler: The Doppler protocol treasury that receives a portion of trading fees.

How It Works: Creator

1. Creator selects coin creation parameters including payout recipient
2. Creator specifies a wallet address eligible to claim their rewards
3. Creator launches their coin -- that's it!

The creator's total rewards are automatically distributed with each trade:

• V4: Converted to target currency and sent directly to payout recipient
• V3: Accumulated in escrow and can be withdrawn at any time

How It Works: Developer

Create Referral Reward

The Create Referral Reward is paid out to the developer or platform that referred the creator to deploy their coin using Zora's contracts.

Creating a Coin with Rewards

The createReferral address is specified upon coin creation through the factory's deploy function.

function deploy(
    address payoutRecipient,
    address[] memory owners,
    string memory uri,
    string memory name,
    string memory symbol,
    bytes memory poolConfig,
    address platformReferrer, // This is the create referral
    uint256 orderSize,
    string memory message,
    bytes32 salt
) external payable returns (address, uint256);

Trade Referral Reward

The Trade Referral Reward is paid out to the platform that referred a specific trade.

V4 Trading with Referrals

For V4 coins, trade referrals are passed through the hook data when executing swaps via the Universal Router or other compatible interfaces.

V3 Trading with Referrals

For V3 coins, trade referrals are specified in the buy/sell functions:

function buy(
    address recipient,
    uint256 orderSize,
    uint256 minAmountOut,
    uint160 sqrtPriceLimitX96,
    address tradeReferrer
) external payable returns (uint256, uint256);

Withdrawing Rewards

V4 Coins

Rewards are automatically distributed on each trade - no withdrawal needed!

V3 Coins and NFT Rewards

Rewards must be withdrawn from the escrow contract, which address can be found in the readme.

function withdraw(address to, uint256 amount) external;

Withdraw for another address directly.

function withdrawFor(address to, uint256 amount) external;

function withdrawWithSig(
    address from, 
    address to,
    uint256 amount, 
    uint256 deadline, 
    uint8 v, 
    bytes32 r, 
    bytes32 s
)