Points

LEV7 runs a verifiable points program: every calculation of points is derived from on-chain data — balances, staking, votes, and referrals — so anyone can independently recompute an epoch and verify the result.

Points determine how each day's rewards are divided among eligible LEV7 holders. Rewards under the points program are currently distributed as vault share tokens. The calculation runs once per epoch (one day), in the order below, each step feeding the next.

1. Measure each address's verified balance

Only verified tokens count toward points. Verification is a property of the tokens, not the wallet, and it follows a simple lifecycle:

• Becoming verified. Tokens are verified when bought through the primary pool — through any router, since the hook collects the 3% fee either way — or revalidated later by paying the same 3% fee at the prevailing time-weighted average price through the Validator contract.
• Staying verified. Verification travels with the tokens through any number of wallet transfers — there is no hop limit. When a wallet holds a mix of verified and unverified tokens, transfers move verified tokens first.
• Losing verification. Verification is destroyed only when tokens enter a swap venue — the primary pool, a permissionless pair, a listed settlement contract — or are burned. There is no penalty beyond that: a sale destroys the verification on the tokens sold and nothing else.
• Ecosystem contracts. Tokens deposited into whitelisted protocol contracts (staking, governance escrow, approved lending) keep their verification and are attributed back to the depositor. Staking never costs you eligibility.

Balances are read as of the epoch's closing block.

2. Apply the eligibility gate

An address must hold at least 7,777 verified LEV7 tokens. Below the threshold, the address scores nothing and drops out of the rest of the calculation for that epoch.

3. Sort the balance into multiplier buckets

Multipliers apply per token, not per address, because one holder can have part of their balance liquid, part staked, and part voting. Each token lands in exactly one bucket:

Base points = each bucket's token count multiplied by its rate, summed.

4. Apply the percentage bonuses

Two bonuses exist. Both are 7%, both are calculated against base points, and they add together rather than multiply — an address with both earns base × 1.14, and that is the ceiling.

• Performance bonus. The address voted in last week's strategy vote, and the strategy beat the benchmark subaccount by the required margin. The bonus expires after 7 epochs.
• Referred bonus. The address was referred, and both it and its referrer are eligible this epoch. If the referrer falls below the threshold, the bonus stops with them.

5. Add referral earnings

The referrer receives 7% of each referee's base points, added as a flat point grant rather than a multiplier. Three rules keep this fair:

• Earnings are calculated on the referee's base points only — never on bonused or referral-inclusive totals.
• Single level only. A referee's own referrals do not roll up to their referrer.
• Capped, twice. A per-referee cap prevents any single referee from dominating a referrer's earnings, and total referral earnings can never exceed the referrer's own base points.

6. Total points

Base points, plus the percentage bonuses from step 4, plus referral earnings from step 5.

7. Convert points into a reward entitlement

Each address's points are divided by the total points of all eligible addresses, then multiplied by the rewards available this epoch. This produces a fractional entitlement.

8. Pay out whole tokens, carry the remainder

Each address's entitlement is added to a running accrued balance held in the distributor. The whole-token portion pays out immediately; the fraction stays on the books and rolls into the next epoch. Whenever an accrued balance crosses one whole token, it pays out then.

Nothing is lost to rounding — every address's exact entitlement is preserved to full precision, no matter how small their daily accrual is.

9. Publish the results

Each epoch's results — including the closing block, the rewards distributed, and the points table — are published, so holders can verify their own rewards and anyone can recompute the epoch from on-chain data.