What is Referral Network?
A multi-tier system that rewards users for bringing new participants to a protocol.
Referral Network Explained
A referral network is an incentive mechanism that rewards existing users for introducing new participants. In Floops, the 10-level deep referral network creates a viral growth engine where referrers earn a percentage when their referrals (and their referrals' referrals) claim rewards. This creates aligned incentives for organic community growth.
Key Characteristics
- Multi-tier reward distribution
- Incentivizes organic growth
- Creates network effects
- Rewards decay with referral depth
Real-World Example
If you refer Alice (Level 1), and Alice refers Bob (Level 2), you earn 5% of Alice's claims AND 4% of Bob's claims. This continues 10 levels deep.
Related Terms
Frequently Asked Questions
What does Referral Network mean?
A multi-tier system that rewards users for bringing new participants to a protocol.
How does Referral Network work in DeFi?
A referral network is an incentive mechanism that rewards existing users for introducing new participants. In Floops, the 10-level deep referral network creates a viral growth engine where referrers earn a percentage when their referrals (and their referrals' referrals) claim rewards. This creates aligned incentives for organic community growth.
Can you give an example of Referral Network?
If you refer Alice (Level 1), and Alice refers Bob (Level 2), you earn 5% of Alice's claims AND 4% of Bob's claims. This continues 10 levels deep.
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