Reward Distributor

The Reward Distributor drains accumulated tips from forti-tips PDA vaults and splits the revenue across 5 destination channels per the tokenomics v3.1 specification. It supports bootstrap and steady-state split configurations with a 30-day linear transition between them.

1. What It Does

Every bundle that lands on-chain through the AXIO block engine generates tips. Those tips accumulate in 8 rotating forti-tips PDA vaults. The Reward Distributor is a permissionless crank that:

1. Reads the current balance of a forti-tips vault (above rent-exempt minimum)
2. Computes the effective split percentages for the current slot
3. Distributes lamports to 5 destination accounts in a single atomic transaction
4. Updates cumulative accounting on-chain

Anyone can crank the Distribute instruction -- no special authority is needed. This ensures tips flow even if the AXIO team is offline.

2. The 5 Channels

Revenue is split across 5 destination channels. All percentages are configured in basis points (10,000 = 100%) and must sum to exactly 10,000.

Bootstrap Split vs Steady-State Split

The program stores two complete split configurations. The admin sets both at initialization:

pub struct SplitConfig {
    pub reserve_injection_bps: u16,  // aXNT reserve
    pub ve_stakers_bps: u16,         // veAXIO holders
    pub buyback_bps: u16,            // AXIO buyback
    pub treasury_bps: u16,           // Treasury
    pub validator_incentives_bps: u16, // Validator bonuses
}

Both configurations must independently sum to 10,000 bps. The active split depends on the program phase:

3. 30-Day Transition Blending

When the admin calls BeginTransition, the program records the current slot and a duration (default ~6,480,000 slots, approximately 30 days). During the transition window, every Distribute call computes a blended split:

weight_steady = elapsed_slots * 10,000 / transition_duration_slots
weight_bootstrap = 10,000 - weight_steady

blended_channel = (bootstrap_value * weight_bootstrap + steady_value * weight_steady) / 10,000

This produces a smooth linear interpolation from bootstrap percentages to steady-state percentages. Once elapsed >= duration, the transition completes automatically and all subsequent distributions use the pure steady-state split.

Transition Example

Assume bootstrap allocates 30% to validator incentives and steady-state allocates 15%:

4. Circuit Breaker

The circuit breaker is a safety mechanism that halves all distributions when the veAXIO lock rate drops below a threshold. This prevents excessive emissions when governance participation is low.

When tripped:

effective_amount = available_lamports / 2

The remaining 50% stays in the source vault for the next distribution cycle. The admin toggles the breaker via SetCircuitBreaker. The undistributed half is not lost -- it accumulates and will be distributed once the breaker resets.

5. Fee Curve Guardrails

Two immutable parameters enforce hard limits on the validator/protocol revenue split. These cannot be changed after initialization:

These are on-chain constants that no admin action can override. They ensure validators are never squeezed below a fair share regardless of governance decisions about the 5-channel split.

6. PDA Derivation

const [configPda] = PublicKey.findProgramAddressSync(
  [Buffer.from("distributor")],
  REWARD_DISTRIBUTOR_PROGRAM_ID
);

7. Instructions

7.1 Initialize

Create the distributor config with both split configurations. Admin only.

Parameters:

Accounts:

Default values set at initialization:

• transition_duration_slots: 6,480,000 (~30 days)
• min_lock_rate_bps: 3,000 (30%)
• validator_floor_bps: 6,000 (60%)
• protocol_ceiling_bps: 4,000 (40%)

7.2 Distribute

Drain a forti-tips vault and split the lamports across the 5 channels. Permissionless -- anyone can crank this.

Parameters: None.

Accounts:

The instruction drains the source vault down to its rent-exempt minimum. If the circuit breaker is tripped, only 50% of the available balance is distributed. The validator incentive channel receives the remainder after rounding to avoid dust accumulation.

All 5 destination accounts are validated against the stored config. Passing incorrect accounts causes the transaction to fail.

7.3 BeginTransition

Start the 30-day linear transition from bootstrap to steady-state splits. Admin only. Fails if bootstrap is not active or a transition is already in progress.

Parameters:

Accounts:

7.4 SetCircuitBreaker

Trip or reset the circuit breaker. Admin only.

Parameters:

Accounts:

7.5 UpdateDestinations

Update one or more destination accounts. Admin only. Pass None for any account you do not want to change.

Parameters:

Accounts:

8. Effective Split Calculation

The effective_split function determines which percentages apply at any given slot:

if bootstrap_active AND no transition:
    return bootstrap_split

if NOT bootstrap_active AND no transition:
    return steady_state_split

if in transition:
    elapsed = current_slot - transition_start_slot
    if elapsed >= transition_duration:
        return steady_state_split
    else:
        blend each channel linearly

Once the transition duration elapses, the next Distribute call automatically clears the bootstrap_active flag and the transition_start_slot, locking in the steady-state split permanently.

9. Accounting Fields

The config tracks cumulative distribution totals for transparency and auditability:

All values can be read directly from the on-chain DistributorConfig account for real-time monitoring.

Next Steps