XP and Reward Distribution
Surf Leagues uses XP as the core accounting unit for contribution, reputation, and reward allocation.
XP is not a token. It is a non-transferable on-chain score that measures how much value a user creates for the ecosystem over time.
XP determines:
Leaderboard rank
Share of season rewards
Access to advanced vaults and vault products
Weighting in future governance and participation rights
This separates participation from speculation and ensures rewards flow to behaviour, not just balance.
XP Sources
XP is earned from real economic activity:
1. Capital Deployment
Depositing assets into Surf vaults generates continuous daily XP.
XP scales with:
Amount deployed
Time deployed
Vault type and risk class
2. Staking
Staking $SURF generates daily XP.
This aligns long-term protocol participants with growth and stability.
3. Trading Activity
Trading $SURF on supported venues generates XP based on on-chain volume.
This rewards liquidity provision and market participation.
4. Referrals
Direct referrals earn an instant XP bonus on activation.
Ongoing network activity generates a passive XP stream via second-order rewards, creating a compounding growth loop.
5. Ecosystem Participation
Future sources will include:
Vault creation
Governance participation
Liquidity routing
Institutional and partner integrations
All XP is tracked automatically. No forms, no manual claims.
Multipliers
XP weighting adjusts based on contribution quality and alignment:
Vault class multipliers
Advanced and higher-capacity vaults generate higher XP per dollar than base vaults.
Season participation multipliers
Long-term consistency across a full season increases effective XP weight.
Network multipliers
Referral tree depth and sustained activity increase second-order XP flow.
Access tier multipliers
Gated vaults and high-performance strategies carry higher XP velocity.
Multipliers reward behaviour that increases TVL stability, liquidity depth, and protocol resilience.
Treasury Flow
Surf operates two coordinated treasuries:
1. Protocol Treasury (Creator.Bid Safe Wallet)
Funded via:
2% of the 3% secondary market sell fee
Used for:
Core development
Infrastructure
Security
Team operations
Ecosystem growth
2. Surf Treasury (Vault Performance Layer)
Funded via:
10% performance fee on realised yield
Realised profits across active vaults
Used for:
Market buybacks of $SURF
Strategic liquidity
Long-term capital buffers
Future incentive programs
Treasury flows are on-chain, auditable, and rule-governed.
Fee Routing
Surf has two distinct fee streams:
Performance Fees (Vault Layer)
10% of realised profits across active vaults
Used to:
Buy back $SURF from the open market
Accumulate protocol reserves
Support long-term deflation and capital efficiency
Protocol Fees (Token Layer)
3% sell fee on secondary market trades
2% routed to the Surf Safe Treasury for operations
1% routed to Creator.Bid protocol for infrastructure sustainability
These fees are:
Non-inflationary
Non-custodial
Automatically enforced by smart contracts
Fully transparent and auditable
Reward Distribution Logic
Season rewards are distributed based on:
XP share = User XP ÷ Total Season XP
Final $SURF allocation per user is proportional to their contribution across:
Capital deployed
Time active
Vault participation
Network growth
Long-term alignment via Flyover and staking
This creates a closed-loop system:
Usage → XP → Rank → Rewards → Reinvestment → Higher Future Access
Not emissions farming. Not short-term extraction. A compounding participation economy aligned with real on-chain value creation.
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