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MNEE Rewards Pipeline

Treasury derivation, two-tier ledger, dispatch, settlement, and the economics of MNEE.

MNEE (pronounced "money") is the reward unit on HeartBadge. This page describes the architecture of the rewards pipeline: how MNEE is created, how it flows, how the two-tier ledger works, and how settlement happens on-chain.

What is MNEE?

MNEE is:

  • A unit of account. Rewards are measured in MNEE. Balances are denominated in MNEE.
  • A transfer medium. MNEE can be sent between members, spent on content, used to pay for inbox access.
  • Backed by settlement. MNEE balances are ultimately settled on-chain (BSV) — not just database rows.

MNEE is not a speculative token. It's not traded on exchanges. Its value is functional: what you can do with it inside the HeartBadge ecosystem.

Treasury derivation

MNEE is created ("minted") when real value enters the system:

  • Membership purchases. When someone buys a badge, a portion of the payment funds MNEE that's allocated to programs (to distribute as rewards) and to the member (as starting balance or restricted balance).
  • Endowment yield. The HeartBadge endowment earns yield on deployed capital. A portion of that yield is converted to MNEE and distributed to members based on HRTB tiers.
  • Program funding. Operators can fund their programs with additional MNEE for larger reward pools.

MNEE is not printed arbitrarily. Every unit is backed by a real inflow.

The two-tier ledger

MNEE operates on a two-tier ledger:

Tier 1: Fast accrual

When you earn a reward or receive a send, your balance updates immediately. This happens on HeartBadge's real-time infrastructure — in-memory state, persisted to fast storage, visible in your wallet within seconds.

Fast accrual is why sending rewards feels like sending a message. There's no waiting for block confirmations. The recipient sees the balance instantly.

Tier 2: On-chain settlement

Periodically, accrued balances are settled on-chain. A settlement transaction is broadcast to BSV that records the net balance changes since the last settlement. This makes the state auditable and verifiable by anyone running a node.

Settlement happens in batches (typically every few minutes, or on-demand for large transactions). The delay between accrual and settlement is invisible to members — your wallet shows the current balance, not the last-settled balance.

Dispatch flow

When a program dispatches a reward:

  1. Event triggers dispatch. A check-in, quest completion, or other qualifying activity fires.
  2. Reward is calculated. Base reward × HRTB multiplier = amount to dispatch.
  3. Fast-tier update. The member's balance is credited immediately.
  4. Webhook fires. The program receives a webhook with the dispatch details (BROADCASTING state).
  5. Settlement batches. At the next settlement window, the reward is included in an on-chain transaction.
  6. Webhook updates. The program receives a MINED webhook when settlement confirms.

P2P transfer flow

When a member sends MNEE to another member:

  1. Sender initiates. Enter recipient identifier, amount, confirm.
  2. 2FA challenge. If enabled and above threshold, verify.
  3. Fast-tier debit/credit. Sender's balance decreases, recipient's balance increases — both immediately.
  4. Settlement batches. The transfer is included in the next settlement transaction.

Settlement economics

On-chain settlement incurs network fees. HeartBadge absorbs these fees — members don't pay them directly. The batching model keeps fees low: instead of one transaction per transfer, hundreds of transfers settle in a single batch transaction.

This is why BSV was chosen. Sub-cent transaction fees at scale make micropayment settlement economically viable.

Auditing and verification

Anyone can verify MNEE balances by:

  1. Starting from the genesis treasury transactions
  2. Walking all settlement transactions
  3. Summing credits and debits for each badge identifier

The fast-tier balance is always ≥ the settled balance (never behind). The difference is the "in-flight" amount waiting for the next settlement.

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