Alignment Rewards Program
The Alignment Rewards Program reserves a portion of Warren's initial supply for protocols and users that strengthen the Warren flywheel over time.
The program rewards measurable activity that improves the system for bWRN holders, liquidity providers, and traders: depositing vote incentives, committing to bWRN, and generating real fee-producing volume.
Allocation
The program is funded with 120,000,000 WRN, or 12% of Warren's initial supply. This allocation is held as locked bWRN at launch.
Program-held bWRN can participate in voting activity and accrue rewards. On a monthly cycle, those rewards can be compounded into WRN, deposited as bWRN, and distributed to qualifying protocols and users based on their contribution to the flywheel.
Reward categories
Monthly rewards are allocated across three categories:
| Category | Share | Method |
|---|---|---|
| Vote incentives | 40% | Distributed pro-rata based on the percentage of vote incentives a protocol contributes across its pools. |
| bWRN deposits | 40% | Distributed pro-rata based on the percentage of bWRN deposited by protocols and users relative to all qualifying participants. |
| Volume | 20% | Distributed pro-rata based on the percentage of fee-generating volume produced by the protocol relative to other qualifying protocols. |
Each category rewards a different form of alignment:
- Vote incentives reward protocols that fund gauges and help direct emissions toward productive liquidity.
- bWRN deposits reward protocols and users that make a long-term governance commitment to Warren.
- Volume rewards protocols whose pools generate swap activity and fee revenue for the system.
Monthly reward cycle
At the end of each monthly cycle:
- Program rewards are measured across the three categories.
- Each participant's pro-rata share is calculated within each category.
- Rewards are compounded into
WRN, deposited asbWRN, and distributed to the qualifying protocol or user wallet. - Category balances reset for the next monthly cycle.
This creates recurring competition for alignment rewards rather than a one-time grant. Participants must keep contributing to maintain or grow their share of future distributions.
Caps and redistribution
No protocol or user can earn more than 15% of any single category's rewards in a given month.
If a participant's calculated share exceeds the 15% category cap, the excess is redistributed to the other qualifying contributors in that category. If there are no other qualifying contributors in that category for the month, the excess is held over for future monthly cycles.
Program sustainability
Governance or program administrators may compound up to 20% of monthly rewards back into the program's bWRN position. This helps preserve the program's relative voting power and supports ongoing reward distribution over time.
The remaining rewards are distributed to qualifying protocols and users according to the category methodology above.