> For the complete documentation index, see [llms.txt](https://docs.nectarliquid.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nectarliquid.com/builders/monthly-rewards-and-anti-wash.md).

# Monthly Rewards & Anti-Wash Trading

In addition to collecting per-trade builder fees, active builders qualify for **Monthly Builder Volume Rewards**. The protocol distributes rewards from a dedicated protocol revenue pool to top builders driving organic volume to Asset Chain.

***

### Monthly Reward Settlement

At the close of each calendar month, the protocol settlement engine calculates qualifying volume and reward allocations:

```bash
# Automated monthly settlement command
node ace calculate:rewards 2026-10
```

The settlement worker:

1. Aggregates all trade events settled between the first and last block of that calendar month.
2. Applies anti-wash trading filters to eliminate artificial volume.
3. Computes each builder's qualifying volume share and provisional reward payout.

***

### Anti-Wash Trading Verification Standards

To protect the integrity of the protocol and ensure that rewards are distributed exclusively to genuine builders, all volume undergoes automated algorithmic scrutiny before payouts are approved.

```
       [ Raw Monthly Trade Events ]
                     |
                     v
+------------------------------------------+
|      Anti-Wash Algorithmic Scrutiny      |
|  1. Unique Trader Count (>= 3 wallets)   |
|  2. Volume Concentration Guard (<= 80%)  |
|  3. Circular Churn & Self-Trade Filter   |
+------------------------------------------+
                     |
         +-----------+-----------+
         |                       |
         v                       v
    [ Passed ]             [ Flagged ]
Status: approved       Status: review_required
         |                       |
         v                       v
Disbursed to Wallet    Manual Compliance Review
```

#### 1. Unique Active Trader Floor

* **Threshold**: A builder must maintain a minimum of **3 unique active trader addresses** during the epoch.
* **Rationale**: Single-wallet or two-wallet configurations cannot disguise self-trading as broad ecosystem distribution. Accounts failing this check are flagged for review.

#### 2. Volume Concentration Guard

* **Threshold**: No single trader may account for more than **80% of total volume** for that builder during the month.
* **Rationale**: Prevents a builder from using a single heavily capitalized whale wallet to artificially monopolize rewards.

#### 3. Circular Churn & Zero-Risk Filter

* **Pattern**: Trades that open and immediately close positions in rapid succession without price movement or economic exposure (churning) are excluded from volume calculations.
* **Netting**: Reverted, canceled, or liquidated trades within abnormal blocks are filtered out before reward allocation.

***

### Reward Lifecycle & Statuses

Each monthly reward record transitions through a transparent state machine:

| Status            | Meaning                                           | Next Action                                       |
| ----------------- | ------------------------------------------------- | ------------------------------------------------- |
| `pending`         | Initial volume aggregation in progress.           | Awaiting end-of-month block confirmation.         |
| `review_required` | One or more anti-wash heuristics were triggered.  | Compliance review checks transaction history.     |
| `approved`        | All algorithmic checks passed; payout authorized. | Queued for on-chain disbursement batch.           |
| `paid`            | Payout confirmed on Asset Chain.                  | Funds settled in builder's primary payout wallet. |

***

### Payout Disbursement

* Rewards are disbursed in stablecoins (USDC/USDT) or native protocol assets.
* Disbursements are sent directly to the builder's **primary wallet address** registered on the builder profile.
* Payout transaction hashes and historical statements are permanently accessible in the builder portal and via the builder API.


---

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