2.3 Rewards Program

A rules-based system that distributes incentives fairly and transparently

The RH Rewards Program is a structured, rules-based mechanism that distributes incentives over time to recognize sustained participation. Rewards are not guaranteed and do not represent profits or fixed returns. Instead, rewards follow predefined eligibility criteria, budgets, and calculation rules that are intended to be transparent and auditable.

Program Objectives

The rewards program is designed to:

• Recognize long-term commitment: Incentives should favor sustained participation over short-lived activity.

• Remain verifiable: Eligibility and weighting should be derived from on-chain state and clearly stated program rules.

• Support multiple initiatives: Rewards can be allocated to different ecosystem programs without changing the core membership model.

• Avoid perverse incentives: The program should discourage “in-and-out” behavior that seeks to capture rewards without meaningful commitment.

Reward Categories (High-level)

Rewards may be distributed through one or more of the following categories, depending on the active program schedule:

• Membership Rewards: Periodic rewards distributed to eligible members based on tier-weighted participation.

• Community Incentives: Campaign-based rewards for community initiatives (e.g., early member programs, contribution campaigns), governed by explicit rules.

• Ecosystem Initiatives: Partner or ecosystem programs that use membership tiers to manage eligibility and weighting.

• P2E Campaigns (Optional): P2E-style seasonal campaigns where rewards are allocated based on predefined rules and verifiable participation criteria, with membership tiers applied to gate eligibility and/or weight distributions.

Epochs, Snapshots, and Eligibility

Rewards are calculated and distributed on an epoch basis (e.g., weekly or monthly). Each epoch uses a defined snapshot (or set of snapshots) to determine:

• Eligible wallets

• Membership tier and reward weight

• Any program-specific conditions (e.g., minimum lock requirements)

A user’s reward share is determined by their reward weight relative to the total eligible weight in that epoch.

Weighting Model (Reference)

The rewards program may use a tier-weighted model such as:

• Base weight = Membership Points (MP) (as defined in Section 2.1), or

• Base weight = Tier Multiplier × Locked RH, where tier multipliers reflect higher commitment.

Program-specific caps or diminishing-return rules may be applied to reduce excessive concentration, and any such rules must be disclosed in advance.

Reward Budget and Distribution

Each rewards category is funded from a defined budget (the “Rewards Budget”) sourced from the designated rewards allocation and/or a rewards pool.

Key disclosures include:

• Reward source: Which allocation or wallet funds the program.

• Budget schedule: How much is distributed per epoch or per campaign.

• Distribution method: Claim-based distribution (user claims) or push-based distribution (protocol sends), as applicable.

• Unclaimed rewards policy: Treatment of unclaimed rewards (e.g., roll over to future epochs, return to pool, or other defined policy).

Budgets and policies must be published and versioned.

P2E Participation Criteria

If a P2E-style seasonal campaign is introduced, rewards should be tied to verifiable participation criteria rather than gambling mechanics. Examples include:

• Time-bound participation checkpoints

• Mission completion or progression milestones

• Skill-based competition outcomes (where applicable)

• Anti-sybil and anti-bot measures appropriate to the campaign

All criteria and scoring rules must be disclosed prior to the campaign start, along with any applicable restrictions and integrity safeguards.

Transparency and Reporting

To maintain trust and auditability, the protocol aims to publish:

• Rewards budgets and schedules

• Reward calculation rules and parameters

• On-chain distribution records (transaction hashes, distribution contracts, or payout addresses)

• Periodic summaries of program performance and adjustments

Any material changes to rewards parameters must follow the governance and operational controls described later in this whitepaper.