Skip to main content
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.

​
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.

​
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.

​
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.

​
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.

​
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

​
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.

​
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

​
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

​
In Summary

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