Subscriber Rewards

Subscriber Rewards

One of the most powerful features Hypersub offers is Subscriber Rewards, which enable creators to share upside with their subscribers.

Subscriber Rewards are designed with a level of customizability that allows creators to reward subscribers in a way that makes sense for their community and level of commitment.

Creators can designate a specific percentage of subscription revenue to go toward the reward pool. These funds will be sent directly to the pool and will never be custodied by the creator or contract owner.

** TL;DR: By default, Hypersub allocates a larger percentage of rewards to earlier subscribers than to later subscribers to ensure that your earliest believers have more ownership. However, you can adjust the reward function to allocate rewards however you want over any period of time.**

Subscriber Rewards are distributed as shares in the rewards pool. Rather than receiving funds outright, subscribers receive a certain number of shares that give them the ability to withdraw a proportionate amount of funds from the pool at any time.

Shares are distributed based on two key factors: 1) how early a subscriber subscribes and 2) how long a subscriber subscribers. By default, early, long-term subscribers will receive more shares than later, short-term subscribers. Under the "Basic" tab in the setup process, you can determine for how long new subscribers will get shares. For example, if you make the reward period 6 months long, then subscribers in the 7th month will no longer receive a share of the rewards pool. During that 6 month period, however, subscribers in an earlier month will receive more shares per dollar than subscribers in later months.

However, the specific function that determines exactly how many shares each subscriber gets is completely customizable under the Advanced tab, with 4 adjustable variables:

  • Period Duration: this is the period of time where rewards remain constant. For example, if you want subscribers in week 1 to receive more shares than subscribers in week 2, you might select "weeks" instead of "months." By default, the period duration is a month.
  • Number of Periods: this is the amount of periods that subscribers will receive shares when they subscribe. For example, if Period Duration is "months" and Number of Periods is 6, then subscribers in month 7 will only receive base-level rewards (by default, this would be zero).
  • Reward Reduction Factor: this is the rate at which the number of rewards decays from period to period. For example, if Reduction Factor is set to 2, that means that subscribers in month 1 will receive twice as many rewards (for the same amount of time subscribed) as subscribers in month 2, and the same is true between month 2 and month 3, and so on. The reduction factor is set to 2 by default, and setting the number higher will lead to a less steep decay curve.
  • Min Multiplier: this is the base level of rewards regardless of period. For example, if you want rewards to slash month-to-month over 6 months, but you still want subscribers in month 7 and beyond to receive shares, you'd set the min multiplier to the number of shares those subscribers would receive.

You can play with these settings here and watch its impact on monthly share distribution: