As Phase II of the RootstockCollective roadmap is kicking off, we are thrilled to announce that the Collective Rewards program is now available for everyone in the RootstockCollective ecosystem.
In addition to Phase II kicking off, the Collective Rewards Whitepaper was also published, explaining how the rewards program will foster the growth of the Rootstock ecosystem by creating a self-sustained mechanism of builders and backers of innovative projects.
In this article, we break down the Collective Rewards whitepaper to describe how the program works, the roles of builders and backers, and how to get started.
Explore the Collective Rewards here.
Before we dig in, it’s important to understand the following terms:
- RIF: RIF is a utility token used to interact with a variety of protocols within the Rootstock ecosystem including acquiring RNS names from the RIF Name Service, minting USDRIF stablecoins, and in its staked form, stRIF, as a governance token in the RootstockCollective ecosystem.
- stRIF: stRIF is the staked version of RIF that allows you to take part in Rootstock governance, from deciding which grant applications should receive funding to supporting projects by becoming backers.
- RBTC: RBTC is the native token of the Rootstock network, pegged 1:1 to BTC and used as gas to interact with the dApps and projects on Rootstock.
- Activated Builder: These are developers who are members of the RootstockCollective, are constant contributors to Rootstock ecosystem, and who have been approved by the community to be added to a whitelist and receive Collective Rewards on a regular basis.
- Backers: These are RIF stakers in the RootstockCollective ecosystem who choose to support certain “Activated Builders” with allocations and get a share of the builders’ rewards.
- Allocation: amount of stRIF/votepower one Backer chooses to support the builder with.
What is the Collective Rewards program?
The Collective Rewards program is a bi-weekly cycle of incentives designed to:
- Reward activated builders for their contributions to the Rootstock ecosystem;
- Enable activated builders to reward backers for their support, incentivizing backers and creating a sustainable growth cycle.
This program represents Phase II of the RootstockCollective’s roadmap approved by the community, which focuses on value capture and long-term ecosystem growth. Builders and backers collaborate to drive innovation, with rewards allocated transparently through decentralized mechanisms.
How Do Collective Rewards Work?
1. Builders and Backers
These two groups sustain the growth model of the RootstockCollective.
Builders: Developers or teams who create projects, dApps, or services on Rootstock. To be eligible for rewards, builders must:
- Receive Community Approval via on-chain voting through the RootstockCollective DAO.
- Complete Know Your Customer (KYC) verification.
- Get Activated for the Collective Rewards, combining KYC approval and community approval.
Once builders achieve an “Active Builder” status, they would be eligible for rewards from the RootstockCollective Treasury.
See guide to becoming a builder here.
Backers: RIF stakers who allocate their backing power (stRIF tokens) to support specific builders. Backers earn rewards from builders who choose to share a percentage of their earnings. The backers’ power is derived from their stRIF token balance, which can be allocated to one or multiple builders in proportions, chosen by the backer.
For example:
- A builder earns 20% of the total rewards for a cycle.
- If the builder sets a Backer-Reward Percentage of 25%, 5% of the total rewards for that cycle go to their backers, with individual shares based on each backer’s allocated votes.
2. The Rewards Cycle
Rewards are distributed over a two-week cycle, based on on-chain activity and support.
In V1.0 builders received an equal share of rewards from the RootstockCollective Treasury. However, with the launch of Collective Rewards V2.0, rewards will be distributed to both builders and backers as follows:
- Builders receive rewards proportional to the level of backing (allocation) they gain from backers.
- Builders set a backer-reward percentage, which determines how much of their reward they share with backers.
- Backers can adjust their allocations anytime, with changes taking effect immediately.
In a nutshell, the percentage that each builder gets from the growth-reward treasury is based on the percentage of votes received from the community. So for example, if builder A receives 10% of the votes, and builder B receives 5% of the votes, builder A will receive 10% of the rewards allocated, whereas builder B will receive 5% with a backer-reward percentage allocated to RIF stakers backing the project.
See guide to becoming a backer here.
3. Distribution Mechanisms
Rewards for builders and backers are computed and distributed transparently through smart contracts.
Builders’ rewards are credited and displayed on the dashboards after each cycle. Both builders’ and backers’ rewards can be claimed manually any time after they’ve been credited in the RootstockCollective dApp. However, there is a difference between backers and builders rewards, which is:
- Builder rewards are credited only after a reward cycle is over – i.e. in the next distribution period.
- Backer rewards are credited to RIF stakers in a continuous manner (accruing by the second).
How is the Collective Rewards program sustainable?
The Collective Rewards program emphasizes transparency and long-term sustainability through:
- Treasury Funding: Initially, rewards are funded by the RootstockCollective Foundation using RIF and RBTC tokens from the treasury.
- Ecosystem Growth: In the future, funding will come from transaction and protocol fees within the Rootstock ecosystem, ensuring sustainability.
- On-Chain Accountability: All funds and transactions are managed through transparent, auditable smart contracts.
Why should you join the Collective Rewards program?
The Collective Rewards program is more than an incentive mechanism—it’s a way for you to get rewarded for bringing utility to Bitcoin.
Builders can get some extra incentivization for their projects’ performance, while backers gain a tangible stake in the ecosystem’s success. Together, they create a self-sustaining network that strengthens Rootstock’s position as the leading Bitcoin Layer 2 solution.
For builders, the Collective Rewards program presents an opportunity to:
- Build on Bitcoin with unparalleled security, ease of use due to the EVM compatibility, and the end-to-end dev stack of the Rootstock blockchain.
- Access extra funding through community support.
- Showcase and promote projects to a decentralized audience.
- Align incentives with backers for mutual growth.
For backers, on the other hand, the program allows them to:
- Earn rewards for supporting innovative projects.
- Actively contribute to the growth of the Rootstock ecosystem.
- Flexibly adjust backing allocations based on builder performance and strategy.
Get started today
Start by getting RIF and join the Collective Rewards program:
- Submit your proposal to the community on Discourse.
- Complete KYC verification through the RootstockCollective dApp.
- Once activated, set your backer-reward percentage and start earning rewards.
- Stake your RIF tokens to receive stRIF tokens.
- Use your stRIF tokens to vote for builders to get them activated in Collective Rewards;
- Use your stRIF tokens to back builders of your choice.
- Monitor and claim your rewards through the RootstockCollective dApp.
