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Documentation Index

Fetch the complete documentation index at: https://docs.bound.xyz/llms.txt

Use this file to discover all available pages before exploring further.

This page explains how binding tokens works on Bound, how reward cycles are structured, and how rewards are claimed. Binding is a commitment mechanism first. Rewards are optional.

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What Binding Means

Binding is the act of committing tokens to a specific hub. When you bind tokens:
  • They are locked or staked via smart contracts
  • They become associated with a specific hub
  • Your participation is visible as a signal of belief
Binding is not:
  • Trading
  • Lending
  • A guarantee of returns
Only bind tokens you are comfortable committing.

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Bound Duration & Conditions

Each hub allows users to choose how long they want to bind tokens. A bound duration:
  • Is chosen by the user
  • Can typically range from 1–52 weeks
  • Cannot be cancelled once tokens are bound
These rules are enforced by smart contracts and cannot be changed retroactively. Always review a hub’s binding conditions before confirming.

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Reward Cycles

Some hubs distribute rewards through reward cycles. A reward cycle:
  • Is a time-boxed period (e.g. 1–8 weeks)
  • Is configured by the hub owner
  • Can be joined by users who were already bound before the cycle started
Once a reward cycle ends, users may claim rewards proportional to their total hub influence
(base hub influence + boosts). A cycle may define:
  • Reward tokens
  • Total reward amounts
  • Reward boosts
  • Eligibility criteria
Not all hubs run reward cycles.

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Hub Influence

Hub influence (sometimes called voting power) starts at 100% and decreases linearly to zero over the bound duration. Example: Bind 1,000 tokens for 10 weeks →
your base hub influence starts at 1,000 and drops to 0 after 10 weeks.

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How Rewards Are Earned

If a hub offers reward cycles:
  • Eligibility is based on binding and participation
  • Longer and more consistent commitment matters
  • Additional factors (such as boosts) may apply
Rewards:
  • Are defined by the hub owner
  • May vary from cycle to cycle
  • Are distributed only after a cycle ends

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Claiming Rewards

When a reward cycle ends:
  1. Eligible users may claim rewards
  2. Claiming requires an on-chain transaction
  3. Gas fees apply
Important:
  • Rewards are not automatically distributed
Always review claim details before confirming.
Depending on the hub and tier:
  • A deposit fee may apply when binding tokens
  • A performance fee may apply to distributed rewards
Fees:
  • Are defined in advance
  • Are enforced by smart contracts
  • Are non-refundable once incurred
Refer to Fees & Economics for more details.

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Extending and Withdrawing

  • Users can add more tokens or extend their bound duration to reset hub influence decay and stay eligible for rewards
  • Tokens can only be withdrawn after the bound duration ends
  • In emergencies, a hub owner may enable early withdrawal for everyone

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Risks to Understand

Binding and rewards involve risk. You should understand that:
  • Token values can fluctuate or become worthless
  • Smart contracts may contain bugs
  • Rewards and perks can change or stop
  • Bound does not guarantee outcomes

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In Summary

  • Binding commits tokens to a hub
  • Reward cycles are optional and time-based
  • Rewards must be claimed manually