Referral farming is where a project incentivises purchase of its tokens via referral links. These referral links are rewarding both the referrers and the buyers.
This is how it works:
- As a referrer, you can explore the referral farms of different tokens in the app and create your unique referral link for any token you would like to recommend or promote
- Grab the link and share it with your communities, friends or family
- You and the buyers you refer will join the referral farm and start earning farming rewards when buyers purchase a token via your referral link
- You and the referred buyers earn a share of the daily farm rewards based on the value purchased via your referral link
- You and the referred buyers keep earning as long as the buyers hold the purchaased tokens
- The rewards are distributed daily and available for claiming
- The earlier you refer buyers the higher the chance to earn a bigger share of the daily rewards
- The more tokens people buy via you referral link the bigger the share of your daily rewards
- The longer the buyers hold the tokens (Buy and Hold) the longer both you and the buyers will receive the rewards
You can check further the example and rewards distribution.
Before you start, there are few key terms you should get to know:
Total Daily Rewards
Rewards distributed daily to referrers and referred buyers who join the referral farms. Rewards are distributed daily to each participant based their share of the total “farm position”
Total Farm Rewards
Total amount of reward tokens deposited in the referral farm that will be distributed to those who join the farm
Estimated Referral Rate
Estimated Referral Rate is the current annualised rate that referrers who joined the farm earn for the amount of tokens purchased via their referral link. Since the referral rate changes daily (based on the total farm position), it is used as an estimate of future referral rate. The same rate is also earned by referred buyers (only named Estimated APR).
Estimated Anual Percentage Rate (APR)
Estimated Anual Percentage Rate (APR) is the current rate of return that buyers who joined the farm earn for the amount of the tokens purchased via someone's referral link. Since the APR changes daily (based on the total farm position), it is used as an estimate of future rate of return. The same rate is also earned by referrers (only named Estimated Referral Rate).
Position is created for those who join the farm based on the value of tokens purchased via referral link, your farm position is equal to 1) the amount of tokens someone purchased via your referral link or 2) the amount of tokens you purchased via someone else’s referral link
You can read the full concept of Referral Farming.