> For the complete documentation index, see [llms.txt](https://guide.updraft.fund/updraft/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.updraft.fund/updraft/basics/funder-rewards.md).

# Funder rewards

Funder rewards are a source of income for Updraft participants. They allow people who create or support good Ideas to earn--even if they don't implement the Idea themselves.

{% hint style="info" %}
When an Idea or Solution offers a funder reward, you will see a gift 🎁 icon followed by a percentage. The percentage is the amount of each contribution that goes to previous contributors.
{% endhint %}

## Funder reward amount

When someone creates an Idea, the funder reward is set to 10% by default.

When someone drafts a Solution,  they can choose any percentage for the funder reward. Their choice creates a balance between allowing funders to earn and directly funding the Solution.

<figure><img src="/files/IdjMh6JxAK8AR7KyIN4F" alt=""><figcaption></figcaption></figure>

## Paying the fee

If an Idea or Solution has a funder reward, you will pay that amount as a % fee when you make a contribution. It will be automatically deducted from your contribution transaction.

{% hint style="info" %}
Contributions in the first *cycle* of a new Idea or Solution (usually the first 12 hours) don't pay a Funder Reward fee. Idea creators also don't pay this fee.
{% endhint %}

## Determining earnings

How much you earn depends on three factors.

* The size of your contribution compared to other contributions.
* How much time passed since you made your contribution.

{% hint style="info" %}
Earning potential increases linearly with each *cycle.* A cycle is a time period used for calculating rewards. Each cycle lasts 12 hours.
{% endhint %}

{% hint style="info" %}
Contributors in the same cycle earn at the same rate, proportional to their contribution. This prevents *front-running,* where an attacker pays extra network fees to put a transaction ahead of another one after they've seen it.
{% endhint %}

* How much is contributed after your contribution.

### For supporting Ideas

After you've supported an idea, you can see your *position* in that Idea, which tells you how much you've earned after subtracting the fees you paid.

<figure><img src="/files/nviXXT9VPk8Km5kIbEzA" alt="" width="375"><figcaption><p>Idea position</p></figcaption></figure>

{% hint style="info" %}
As a general rule, if more support is added to an Idea after your contribution than was added before, you will earn a profit.
{% endhint %}

### For funding Solutions

When you fund a Solution, part of your contribution goes to the Solution Fund and part of it goes to past contributors as funder rewards. These appear as "fees" in your Solution position.

<figure><img src="/files/rzb1BQPj9irTxmMfA03h" alt=""><figcaption><p>Solution position</p></figcaption></figure>

{% hint style="info" %}
You will start to earn funder rewards in the next cycle (12 hours).
{% endhint %}

You can collect funder rewards from the Solution page as you earn them.