> For the complete documentation index, see [llms.txt](https://smartvaultsai.gitbook.io/smartvaultai-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartvaultsai.gitbook.io/smartvaultai-docs/tokenomics/referral-token-rewards.md).

# Referral Token Rewards

Token-Based Incentives for Network Participation

In addition to vault-based rewards and deposit bonuses, SmartVaults.ai includes a token-based referral incentive system.

This system distributes additional SVT tokens to participants who contribute to platform growth through verified referrals.

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### **Referral Bonus Mechanism**

When a user deposits into a vault and receives bonus tokens:

* A **separate referral bonus pool** is created
* This pool is calculated as:

**Referral Pool = User Bonus Tokens × 50%**

Example:

* User Bonus: 1,000 SVT
* Referral Pool: 500 SVT

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### **Multi-Level Distribution**

The referral bonus pool is distributed across **7 levels**:

* Level 1 → 20%
* Level 2 → 10%
* Level 3 → 7.5%
* Level 4 → 5%
* Level 5 → 3.5%
* Level 6 → 2.5%
* Level 7 → 1.5%

All distributions follow predefined allocation rules.

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### **Vesting Structure**

Referral tokens follow the same vesting model as user bonus tokens:

* Duration: **12 months (365 days)**
* Release: **Daily linear unlock**
* Claim: Available at any time
* Unclaimed tokens remain accumulated

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### **Eligibility Conditions**

Referral rewards are only generated under specific conditions:

* A valid referral must be set **before deposit**
* Applies only to the **first qualifying deposit**
* Each user can trigger referral rewards once at activation

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### **Unassigned Rewards**

If a referral level is not occupied:

* The corresponding token allocation is **not distributed**
* Tokens are returned to the **treasury pool**

This prevents uncontrolled token emission.

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### **System Purpose**

The referral token system is designed to:

* Support organic platform growth
* Incentivize network expansion
* Align user onboarding with token distribution

The mechanism is tied to real participation rather than passive reward generation.

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### **Controlled Distribution**

All referral rewards operate within defined limits:

* Derived from the main airdrop allocation
* Subject to vesting constraints
* No unlimited or uncontrolled issuance

This ensures a structured and predictable emission model.