Overview
Capital participation rewards are designed to recognize participants who mint eligible ETFTs and retain their positions over time. Sustained participation helps an ETFT establish its asset base and supports the development of new products. The framework measures eligible capital and holding time, rather than the number of transactions or wallets used. This program focuses on primary capital participation. Providing liquidity in a secondary market is a separate activity with separate eligibility and measurement rules.This page describes the proposed program framework. Rewards become available only when Alloco announces an active campaign and publishes its terms. This page describes a proposed program framework and does not establish a guaranteed return or a right to any future asset.
How participation works
- Select an eligible ETFT. Review the campaign dates, qualification requirements, reward budget, and distribution terms.
- Mint the ETFT. Contribute USDC or USDT through the supported primary route. USDT is automatically converted into USDC before underlying execution.
- Complete your claim. Once the mint becomes Claimable, claim the ETFT to your wallet. Under this framework, reward measurement starts when the order is Completed, or at the campaign start if later.
- Retain the eligible position. Contribution scores accrue for the qualifying portion of your position during the campaign.
- Receive or claim rewards. After the measurement period, Alloco validates contributions and distributes rewards according to the published terms.
Eligible products and participants
Each campaign identifies its eligible ETFTs, networks, minting window, and participant requirements. Availability of an ETFT for minting does not automatically mean that it earns rewards. The minimum mint amount is 100 USDC, measured after any USDT conversion costs and before underlying portfolio execution costs. Network gas is separate. Meeting this minimum does not automatically satisfy a campaign’s reward qualification requirements. Campaigns may specify a minimum qualifying period or contribution cap. These requirements must be disclosed before participation. Product access and transfer rules continue to apply.Measuring eligible capital
Capital basis
For this framework, eligible capital is the net USDC contribution attributed to a successfully completed mint after costs deducted from that contribution. It is recorded against the corresponding issued units. A USDT contribution is measured using the actual USDC conversion result, with applicable costs accounted for once. USDT and USDC are not assumed to exchange one-for-one. Separately paid network fees do not increase eligible capital. This reward basis is distinct from the 100 USDC mint threshold, which is tested before underlying execution costs. A qualifying mint can therefore have a reward capital basis below 100 USDC after those costs.Holding-time score
The contribution score measures eligible retained capital over time:Portfolio price changes
The capital basis tracks the original net contribution attributable to the remaining eligible units. It does not increase when the ETFT price rises or decrease solely because its price falls. Consequently, the contribution score measures retained contributed capital, not current market value or investment performance. Holding rewards do not protect the position against losses.Changes to your position
A campaign must publish how units are attributed to contribution records when a wallet contains multiple mint lots or other holdings. This attribution policy must be applied consistently to redemptions and transfers.
If an accepted redemption is cancelled and the units are restored, subsequent accrual follows the campaign’s reinstatement rules. Rewards do not automatically accrue during the period when those units were committed to redemption.
Transferred units, exchange custody balances, and liquidity-pool positions are eligible only if the campaign expressly supports them and can reliably attribute ownership. A transfer must not create a second capital contribution or allow the same units to accrue rewards twice.
Splitting a position across wallets does not increase its aggregate contribution score. Related-account rules apply to campaign caps and eligibility checks.
Reward allocation
Each campaign has a defined measurement period and a capped reward budget. After validation, rewards may be allocated proportionally:Rewards and distribution
A campaign identifies its reward form and conditions before participation begins. Rewards are intended to recognize sustained participation. They are not a return on the ETFT, a share of platform revenue, or compensation for investment risk. Unless a campaign’s published terms state otherwise, rewards and participation records have no monetary value, cannot be purchased, sold, or transferred, and do not create an entitlement to any future asset or distribution. Alloco has not committed to issuing any token or other digital asset. Brokerage, conversion, and network charges are not automatically reimbursed. After a measurement period ends, contributions are reviewed before rewards are finalized. Estimated dashboard amounts may change during verification. Final allocations, delivery dates, deadlines, and any applicable costs are communicated through the campaign’s official channels.Redemption and reward delivery
Participation does not itself lock your ETFT units or change the product’s redemption terms. You can submit a redemption subject to the applicable product rules. An accepted redemption stops future reward accrual for the affected units. Previously recorded scores are handled according to the campaign terms, including any disclosed minimum holding period. They are not automatically guaranteed or forfeited merely because a redemption occurs. Any condition attached to reward delivery must be stated before participation and does not restrict redemption of the ETFT. Redemption fees and execution costs remain applicable unless the campaign expressly covers a specified charge. Rewards do not reverse USDT conversion costs incurred during minting.Program integrity
Rewards are intended for sustained participation. Campaigns may exclude circular mint-and-redeem activity designed to farm rewards, duplicate claims, fabricated ownership, and related-account arrangements designed to evade limits. Normal redemption is not, by itself, evidence of abuse. Reviews follow the published criteria and dispute process. Where reliable measurement is unavailable, accrual or distribution may pause under the campaign’s exception rules. Any combination with other Alloco incentives must be explicitly permitted. The same capital cannot be counted multiple times within this program through wallet transfers, custody records, or liquidity-pool representations.Funding and reporting
Each campaign identifies its funding source. Platform- or sponsor-funded rewards are separate from ETFT portfolio assets. Any reward expense charged to an ETFT must be disclosed and reflected in its valuation accounting. Reward distributions are reported separately from ETFT NAV performance. A reward does not increase the product’s underlying investment return merely because it is distributed to a holder. Holding an ETFT or earning rewards does not establish a right to platform profits or guarantee a secondary-market listing.Campaign terms
Before a campaign begins, its terms specify:| Area | Required details |
|---|---|
| Eligibility | Products, networks, participants, qualifying mint dates, and treatment of pre-existing positions |
| Measurement | Capital basis, time precision, qualification periods, lot attribution, transfers, and reinstatement rules |
| Budget | Reward asset, funding source, total budget, participant caps, and unused-budget treatment |
| Allocation | Formula, rounding, exclusions, and permitted combinations with other programs |
| Delivery | Validation timing, delivery conditions, deadlines, and applicable costs |
| Exceptions | Data outages, pauses, cancellations, disputes, misconduct review, and termination |