Rewards Economics
How HeartBadge sustains member rewards without extractive fees.
HeartBadge rewards members for participation. This page explains how the platform funds those rewards, why it doesn't rely on extractive fees, and how the HeartBeat (HRTB) multiplier determines what each member receives.
Where rewards come from
Member rewards flow from three sources:
- Programs. Operators fund rewards for their members — event bonuses, quest completions, engagement incentives.
- Other members. Peer-to-peer transfers and gifts.
- The platform. HeartBadge periodically distributes rewards to active members based on their HeartBeat tier.
Platform rewards
Platform rewards are funded by yield generated on capital held by HeartBadge. The mechanics are straightforward:
- Capital is deployed into yield-generating instruments
- Yield is earned over time
- A portion of yield is distributed to members
- A portion is retained to grow the capital base
Distribution happens periodically. When it does, your HeartBeat tier determines your share.
HeartBeat determines your share
When platform rewards are distributed, members receive shares based on their HeartBeat (HRTB) multiplier:
- 1.0x member receives 1 share
- 1.5x member receives 1.5 shares
- 2.0x member receives 2 shares
- 3.0x member receives 3 shares
The total pool is divided by the sum of all shares, then allocated proportionally. Members who participate more earn more.
No rent, no extraction
HeartBadge doesn't charge members recurring fees. Your badge works forever once activated. Platform operations are funded by:
- A portion of membership purchases (separate from rewards capital)
- Minimal transaction fees on certain flows (paid inbox, etc.)
- Program fees from operators running MaaS
The philosophy: the platform earns enough to operate well, not enough to become a rent-seeker.