# Direct Referrals (Layer 1) ### **Purpose** This page explains how **individual creators, influencers, KOLs, and community leaders** earn through **Direct Referrals (Layer 1)** in the Arkada Referral System. The purpose of this layer is to reward **measurable contribution generated by your direct referrals**, with contribution defined exclusively as: * **Quest completions by users you directly onboard** Other actions such as content creation, social promotion, hosting AMAs, or mentoring are **supporting instruments**. They help drive quest participation, but **do not generate rewards on their own**. > Direct Referrals (Layer 1) serve as the foundation for all other user-facing referral layers, including Mentorship Rewards and Joint Pools. *** ### **Base Contribution Tiers** Earnings in Direct Referrals are determined by **performance thresholds**, based on the value generated through quest completions. **Tier 1 represents the highest referral share (30%)**, while **Tier 4 represents the lowest (10%)**. #### **Tier Table** | Tier | Value Generated (rolling, USD) | Referral Share | | ---------- | ------------------------------ | -------------- | | **Tier 1** | **3,001+ USD** | **30%** | | **Tier 2** | **1,501–3,000 USD** | **20%** | | **Tier 3** | **501–1,500 USD** | **15%** | | **Tier 4** | **0–500 USD** | **10%** | #### **Notes** * Value is derived from **quest completions by referred users**, normalized in USD. * USD is used strictly as a **calculation and reporting layer**, not as the underlying activity metric. * Value is evaluated on a **rolling basis** and applied **dynamically**. * Tiers are **global** and act as the baseline for all other user-facing referral layers. * Arkada periodically reviews tier thresholds and conditions to ensure **fairness, sustainability, and alignment with overall platform activity**. Thresholds may be adjusted over time as the ecosystem evolves. *** ### **Reward Distribution (Important)** Referral rewards are distributed **on-chain at the moment a quest is completed**, directly to the wallet of the referrer. * The referral share applied is based on your **current tier at the time of the quest completion**. * Tier changes affect **future rewards only** and do **not retroactively modify past payouts**. This ensures rewards are **immediate, transparent, and verifiable**. *** ### **Arkada Points Referral Bonus** In addition to value-based rewards, **Direct Referrals also generate Arkada Points**. When a user you refer completes quests and earns **Arkada Points**, you receive **1% of the Arkada Points they earn**. **Example:** * A referred user earns **1,000 Arkada Points** * You receive **10 Arkada Points** #### **Rules** * Applies to **direct referrals only** * Applies to **all quest completions** * Calculated **independently** from value-based referral tiers * Accrues automatically as long as the referral remains active Arkada Points represent **long-term engagement and contribution** and run in parallel to value-based rewards. *** ### **Key Performance Indicators (KPIs)** #### **Primary KPIs (generate rewards)** * Number of quests completed by referred users * Aggregate quest activity generated by your direct referrals #### **Supporting activities (instruments)** * Social promotion and content creation * Hosting AMAs or community sessions * Mentoring and onboarding other contributors > Only quest-driven activity generates rewards. Supporting actions increase performance but are not KPIs themselves. *** ### **Example Calculation** **Scenario:** * Referred users complete **15,000 quests** * Normalized value per quest: **$0.25** * Total value generated: **$3,750** **Referral share (Tier 1 = 30%)** * Earnings = $3,750 × 30% = **$1,125** **Arkada Points bonus** * If those users earned **12,000 Arkada Points** * You receive **120 Arkada Points (1%)** > This example reflects Direct Referral earnings only and excludes Mentorship Rewards or Joint Pools. *** ### **Tier Management & Safeguards** Tier reassignment is **not immediate** and is designed to reward **sustained contribution**, not short-term spikes. * **Upgrades (to a higher-share tier)** require **1 month** of sustained performance at or above the relevant threshold. * **Downgrades (to a lower-share tier)** apply only after **2 months** of sustained performance below the relevant threshold. **Important clarifications:** * Rewards are still paid **immediately on-chain** at the time of each quest completion. * The 1-month / 2-month rule affects **when your tier is allowed to change**, not when payouts occur. * Tier status affects **future rewards only** and does not retroactively adjust past payouts. Arkada reserves the right to **manually review individual cases** and apply adjustments when necessary to protect system integrity, prevent abuse, and ensure fairness. *** ### **Tracking & Transparency** Every contributor has access to a **profile page** that serves as their referral control center. From this page, contributors can: * Track **total quest-driven value generated** * View their **current tier and applicable referral share** * Monitor **Arkada Points earned from referrals** * Access their **unique referral link** All data is visible, verifiable, and updated in real time. *** ### **Key Takeaways** * Quest completions are the **only core value signal** * Supporting actions are **means, not outcomes** * Direct Referrals generate: * **Tier-based value rewards** * **1% Arkada Points bonus** * Higher contribution → **higher tier → higher referral share** * Tier 1 represents the **maximum individual referral share (30%)** * Tier application is **dynamic, non-retroactive, and safeguarded** * This layer is the **foundation** of the Arkada Referral System for users > Tier numbering follows common Web3 convention: Tier 1 represents the highest referral share. 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