Overview

Automate tracking, calculation, and distribution of rewards to partners.

What is the Rewards Engine?

The Rewards Engine automates the tracking, calculation, and distribution of rewards to partners.

The Rewards Engine is designed as a Paxos platform capability, so it supports any stablecoin issued through Paxos. Partners interact through the Paxos Dashboard, the API, directly with the smart contract, or any combination of these interfaces.

Who is this for?

Distribution partners holding or distributing Paxos-issued stablecoins who want to manage their downstream rewards program with ease. This guide covers content relevant to account managers, developers, finance, product, and program managers.

How it works

The Rewards Engine currently processes custody rewards. Support for additional reward types and tracking and calculation capabilities may be added based on customer needs.

Custody rewards flow

1. Submit wallets

   Register reward addresses for monitoring.

2. Daily snapshot

   Balances are captured on-chain.

3. Rewards calculation

   The applicable rate is multiplied by the captured balance.

4. Payouts

   Rewards are claimed to the assigned payout group.

5. Reporting

   Activity is reflected in the Dashboard and via the API.

Key concepts

Concept	Definition
Rewards wallet	A blockchain address that accumulates rewards for eligible stablecoin activity. Rewards addresses are submitted for monitoring, and a snapshot of the daily balance is used to calculate rewards accrued.
Payout group	A group of rewards wallets that receive rewards distributions collectively to a single destination address. Payout groups are chain- and jurisdiction-specific. Partners can create additional payout groups to represent different product lines or customer segments.
Claims	Define when and how an organization receives rewards payouts. The Rewards Engine supports automatic daily claims.
Jurisdiction	Payout groups carry a jurisdiction designation (EU or non-EU) that maps to the applicable earnings rate agreed upon at the contractual level.
Earnings rate	Rewards rate applied to the balance daily. Rates are set at the partner level.

Access and interfaces

Distribution partners access the Rewards Engine through three primary surfaces: the Paxos Dashboard, the API, and direct smart contract interaction.

Dashboard

The Dashboard provides a daily view of Rewards Engine activity, including:

• Rewards summary: total lifetime earned, available to claim, and estimated next accrual.
• Current earnings rate and next accrual period.
• Payout group overview with balance and destination address.
• Claims history: per-period payout amounts.
• Rewards wallet list per payout group.

API

The API supports both programmatic queries and configuration. Most features available in the Dashboard are also supported through the API. See the Rewards Engine API reference for details.

Scope and roadmap

The following table summarizes what’s supported today and what’s planned. Customer feedback directly shapes this roadmap.

Capability	Today	Future
Daily automated claims	✓	✓
API access	✓	✓
Manual claims	✗	✓
Jurisdiction-specific rates	✓	✓
Claim schedules (weekly, monthly)	In progress	✓
Payout group management	✓	✓
Custom rates per payout group	In progress	✓
Wallet verification	✓	✓
In-product monthly statements	✓	✓
Wallet-level statement data	✓	✓
Rewards calculation — custody rewards	✓	✓
Rewards calculation — custom event rewards	✗	Contact us for requirements

Things to plan around

• Claims run automatically — partners cannot trigger manual payouts today.
• No retroactive claims. Wallets only accrue rewards once you submit them.
• You must add a payout wallet (the destination address that receives your rewards) to accrue rewards. Payout wallets are chain-specific; submit one for each chain that you are holding USDG on.

Questions or feedback?

Contact your account manager or email [e-mail] with feedback, feature requests, or questions about onboarding.