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

# How It Works

## Phased Reward System (Rounds)

The rewards program operates through distinct cycles where participants accumulate rewards. A Round concludes once the base-credit cap is reached or at the Round deadline, whichever comes first.

**Round 1:** 150,000 USD baseline prize pool, expandable with DEX and sponsor contributions. Round 1 ends when the 1,500,000 base-credit cap is reached or on December 31, 2026, whichever comes first.

### During a Round

* Earn DexPal Credits via trading, quests, and referrals
* Build rewards based on trading fees
* Compete on leaderboards for additional prizes
* Monitor progress on the dashboard in real-time

### Round End

* DexPal Points are allocated based on Credits earned
* Prize pool distributed to winners
* Competition prizes paid out
* Credits reset to zero for the next round

### Between Rounds

* New quests and challenges announced
* Rules refined based on community input
* New trading competitions introduced
* Bonus incentives can be announced

## Prize Pool

The prize pool starts at a 150,000 USD baseline funded from affiliate commissions, then expands with DEX sponsorships and ecosystem contributions, and is fully redistributed to participants.

**Funded from:**

* Baseline 150,000 USD from affiliate revenue on DexPal referral codes
* Expandable with DEX sponsorships
* Expandable with ecosystem / third-party contributions

### Distribution at End of Each Round

| Category              | Allocation       | Description                                     |
| --------------------- | ---------------- | ----------------------------------------------- |
| Cashback              | \~70% of credits | Fee rebates paid in USDC through DexPal Credits |
| Competitions          | \~20% of credits | Global Degen Board + per-DEX leaderboard prizes |
| Treasury & Operations | \~10% of credits | Platform maintenance and reserves               |

Dollar amounts scale with the pool as it expands.

DexPal Points — a separate, permanent reward currency — are allocated from their own 1,000,000-point round pool; see [Credit System](/for-users/rewards/credit-system.md).