# How Partners Earn
> **Partners don't profit by taxing users. Partners profit by growing the network.**\
> Candao replaces fee extraction with **performance-based protocol rewards** and **direct business revenue**.
***
## TL;DR
Most apps earn by taking a cut from every transaction.\
Candao flips this:
* You **commit to Zero Fee** (no platform-style cuts)
* Users join through **Infinite Package** ($100 CDO)
* The protocol rewards you with **CDO allocations** based on: **active users + retention + cross-ecosystem contribution**
This is not charity. It's **engineered economics**.
***
## The Core Shift
Traditional apps monetize via:
* platform fees (10–30%)
* subscriptions
* ads & data extraction
**Candao flips it:**
The app owner commits to Zero Fee and earns through:
1. **Protocol rewards (CDO pool)** — rewards linked to verified network contribution
2. **Direct revenue** — selling products/services directly (no marketplace tax)
3. **Reduced build cost** — AI-accelerated + community execution lowers development spend
4. **Utility-driven demand exposure** — adoption increases CDO utility demand (no guarantees)
> **Zero Fee does not mean zero revenue.**\
> It means we remove rent extraction and replace it with network-aligned rewards.
***
## Partner Entry: The $1,000+ CDO Commitment
A partner enters by holding:
| Requirement | Details |
| ------------------- | ------------------------------------------------------------- |
| **CDO commitment** | $1,000+ worth (varies by partner/business scope) |
| **Purpose** | Alignment bond (not a fee) |
| **Operating model** | Zero Fee (no platform cuts) |
| **Mission** | Onboard users into Infinite Package + grow the 360° community |
This is not a "pay us" fee. It's a **protocol alignment bond**.
### Token Lock Schedule
Partner tokens are locked with gradual unlock:
| Year | Unlock | Cumulative |
| ---- | ------ | ----------- |
| 1 | 0% | 0% liquid |
| 2 | 10% | 10% liquid |
| 3 | 10% | 20% liquid |
| 4 | 40% | 60% liquid |
| 5 | 40% | 100% liquid |
> **Zero-fee access and partner benefits continue throughout the lock period.** The lock removes tokens from circulation, creating healthier tokenomics for everyone.
### Dynamic Unlock Mechanism (Future Governance Feature)
> ⚠️ **Governance-Defined** — This mechanism is under development and subject to community vote.
**The Concept:** Instead of fixed yearly unlocks only, unlock speed could adjust based on ecosystem health. When the ecosystem thrives, participants unlock faster. When markets are stressed, unlocks slow down to protect everyone.
| Ecosystem Health | Effect on Unlock |
| ----------------------------------------------- | ------------------------------- |
| **Strong** (price above average, high volume) | Accelerated unlock (up to 1.5x) |
| **Normal** (stable metrics) | Standard schedule |
| **Stressed** (low liquidity, declining metrics) | Minimum unlock (floor rate) |
**Why This Works:**
* Rewards holders when ecosystem is thriving
* Protects against dumps during downturns
* Aligns seller behavior with ecosystem health
***
📐 Technical Details: How Dynamic Unlock Works
**Proposed Formula:**
Where:
**Metrics Used:**
| Metric | Healthy Range | Source |
| ------------------ | ------------------------------ | ------------------- |
| **Token Price** | Above 90-day moving average | DEX/CEX oracles |
| **Trading Volume** | Above governance-set threshold | On-chain data |
| **Market Depth** | Sufficient buy-side liquidity | Order book analysis |
| **TVL** | Growing or stable | Protocol analytics |
**Safeguards:**
| Guard | Description |
| ----------- | ------------------------------------------------------------- |
| **Floor** | Unlock never drops below scheduled minimum |
| **Ceiling** | Max 1.5x acceleration (prevents sudden dumps in bull markets) |
| **Delay** | Any acceleration requires 30-day governance notice |
| **Audit** | Quarterly third-party verification of metrics |
**Example Scenario:**
| Condition | Base Rate | Multiplier | Effective Rate |
| ---------------------------------------- | --------- | ------------ | -------------- |
| Bull market (price 1.2x MA, high volume) | 10%/year | 1.4x | 14%/year |
| Normal market | 10%/year | 1.0x | 10%/year |
| Bear market (price 0.7x MA) | 10%/year | 1.0x (floor) | 10%/year |
> **Note:** All parameters are governance-defined and may evolve based on ecosystem needs.
***
## What Partners Receive
### 1. Apps Built by the 360° Community
Instead of paying agency rates, partners access an ecosystem pipeline:
* AI-accelerated development (improving monthly)
* Multirole contributors (devs, designers, marketers, operators)
* MVP-first delivery with reusable modules
Contributors earn via community reward mechanisms and project-aligned incentives.
### 2. Happier Customers Through Lower Prices
Because you operate Zero Fee:
* Customers pay less (no middleman tax)
* Higher perceived value per dollar
* Stronger retention and loyalty
### 3. CDO Reward Pools Replace "Fee Profit"
Instead of a cut on every transaction, the protocol allocates rewards:
| Your Contribution | Your Reward |
| ---------------------- | -------------------- |
| Users onboarded | CDO allocation |
| Engagement + retention | Quality multiplier |
| Cross-app adoption | Ecosystem multiplier |
> **Value created for the network → rewards returned to the creator.**
***
## The Partner Reward Formula
> **More verified active users + better retention = larger share of protocol rewards.**
### Reward Distribution (Per Epoch)
An **epoch** is a fixed accounting period (e.g., monthly or quarterly).
$$
\text{Reward}\_i(t) = \text{Pool}(t) \times \frac{\text{Score}\_i(t)}{\sum\_j \text{Score}\_j(t)}
$$
Where:
* **Pool(t)** = total CDO allocated for partner rewards in epoch *t*\
\&#xNAN;*(governance-defined; may be funded by emissions, protocol revenue, and/or DAO treasury)*
* **Score\_i(t)** = partner *i* contribution score
* **Σ Score\_j(t)** = normalization across all partners
### Contribution Score
$$
\text{Score}\_i = w\_u \cdot f(\text{MAU}*i) + w\_r \cdot \text{Retention}*{30} + w\_x \cdot \text{CrossAppActivation} - w\_s \cdot \text{SybilRisk}
$$
**Constraints:**
* All weights are non-negative: $w\_k \geq 0$
* Weights sum to one: $w\_u + w\_r + w\_x + w\_s = 1$
* Weights and metrics are governance-defined and may evolve
**Definitions:**
* **MAU** = Monthly Active Users (verified, anti-bot)
* **Retention₃₀** = % still active after 30 days
* **CrossAppActivation** = users who adopt other Zero Fee apps
* **SybilRisk** = anti-fraud penalty (prevents "fake users" gaming)
### Fairness Function (Prevents Monopoly Capture)
To reduce runaway concentration, MAU is scored with a **concave function**:
$$
f(\text{MAU}) = \log(1 + \text{MAU})
$$
Large apps still win, but not infinitely — smaller high-quality apps remain competitive.
### Illustrative Example (Not a Promise)
| Partner | MAU | Retention | Pool Share |
| ---------- | ------ | --------- | ---------- |
| Small app | 500 | 85% | \~2% |
| Medium app | 5,000 | 70% | \~10% |
| Large app | 50,000 | 60% | \~25% |
***
## Integrity & Anti-Gaming (Privacy-Preserving)
The protocol rewards **real users**, not bots.
| Protection | Implementation |
| ----------------------- | --------------------------------------------------------------------- |
| **Sybil resistance** | On-chain reputation / attestations (optional, jurisdiction-dependent) |
| **Bot prevention** | Rate limits, anomaly detection, challenge-response flows |
| **Fake user penalties** | SybilRisk reduces score and reward share |
| **Auditability** | Verifiable aggregates (minimum necessary data; privacy-first) |
Partners who attempt manipulation may face:
* Reward suspension
* Reputation penalties
* Removal from the program (governance-defined)
***
## Partner Commitments
| You Commit | You Receive |
| --------------------------------------- | ---------------------------------------------------- |
| Hold $1,000+ CDO (alignment bond) | Access to app factory pipeline + community execution |
| Operate Zero Fee (no platform cuts) | Share of protocol reward pools |
| Onboard users into Infinite Package | Growth-aligned reward multipliers |
| Introduce partner candidates (optional) | Ecosystem expansion bonuses (governance-defined) |
> **Partner introductions are an ecosystem growth mechanism — not a compensation scheme.**
***
## Infinite Package for Users
Users enter through:
| Package | Cost | What it unlocks |
| ------------ | -------- | ------------------------------------------------------ |
| **Infinite** | $100 CDO | Unlimited zero-fee access to participating Candao apps |
### Token Lock Schedule
User tokens are locked with gradual unlock (same as partners):
| Year | Unlock | Cumulative |
| ---- | ------ | ----------- |
| 1 | 0% | 0% liquid |
| 2 | 10% | 10% liquid |
| 3 | 10% | 20% liquid |
| 4 | 40% | 60% liquid |
| 5 | 40% | 100% liquid |
> **Your access never stops.** The lock removes tokens from circulation, creating healthier tokenomics. You keep your tokens — they just become liquid gradually.
**Note:** Infinite Package excludes external hard costs:
* Heavy AI compute
* Payment rail fees
* Shipping / logistics
* Third-party services
Users aren't buying access to one app.\
They're buying access to an **expanding universe of Zero Fee apps**.
***
## The Partner Flywheel
```
┌─────────────────────────────────────────────────────────┐
│ PARTNER FLYWHEEL │
├─────────────────────────────────────────────────────────┤
│ │
│ Partner commits $1,000+ CDO │
│ ↓ │
│ Gets app built by 360° Community │
│ ↓ │
│ Operates Zero Fee → attracts users │
│ ↓ │
│ Users buy Infinite Package ($100 CDO) │
│ ↓ │
│ CDO demand increases → Partner rewards grow │
│ ↓ │
│ [Repeat] │
│ │
└─────────────────────────────────────────────────────────┘
```
***
## Important Disclaimers
> ⚠️ **Not investment advice.**
>
> * Reward pools and scoring rules are governance-defined and may change
> * Token prices fluctuate; there are no guarantees
> * Examples are illustrative only
> * Partners earn via protocol participation and direct business value — not price promises
***
## FAQ
**Q: Why would I commit $1,000+ if I don't get guaranteed returns?** A: The $1,000 is held, not spent. You keep it. It's an alignment bond that signals you're serious — and it unlocks the 360° community, app factory pipeline, and protocol rewards.
**Q: What if users don't show up?** A: That's the partner's job: growth. The good news? You're not competing against platforms with massive ad budgets. Your users pay less (Zero Fee) and stay longer (better retention). The economics work in your favor.
**Q: Is this like an MLM / referral scheme?** A: No. Partner introductions are optional and ecosystem-aligned — there are no tiered commissions or downline structures. Rewards are based on user growth, not recruitment pyramids.
**Q: What happens if Candao fails?** A: Your tokens are yours. If the ecosystem doesn't grow, your tokens may lose value — but you're not locked into a platform. Unlike subscription fees, you never "lose" what you paid. You hold an asset.
**Q: How do I know the reward formula won't change against me?** A: Changes are governance-controlled and announced with timelocks. Partners can vote on proposals. No surprises.
***
## Summary
**Convert your app to Zero Fee.**\
**Commit $1,000+ in CDO as alignment.**\
**Grow real users and retention.**\
**Earn via protocol rewards and direct revenue — not by taxing your community.**
The whole system grows as a movement: **no rent extraction, ownership, contribution, rewards.**
---
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