# 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="https://2594132095-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fm4mFnd0HOFrQCbhb8246%2Fuploads%2FskUnfhSaoZ5uVViMWSWg%2FScreenshot%202025-05-24%20at%2011.08.39%E2%80%AFAM.png?alt=media&#x26;token=682904af-c1be-4ebf-9e37-0461e75f939e" 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.
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## 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.
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{% 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="https://2594132095-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fm4mFnd0HOFrQCbhb8246%2Fuploads%2FUnWLVy2U2Kw15otRVJX2%2FScreenshot%202025-05-24%20at%203.38.18%E2%80%AFPM.png?alt=media&#x26;token=9b6b80e9-8601-4748-b621-cd6e9c575e6c" 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="https://2594132095-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fm4mFnd0HOFrQCbhb8246%2Fuploads%2F6nERSyNFchOLjfBcAcnS%2FScreenshot%202025-05-26%20at%202.50.41%E2%80%AFAM.png?alt=media&#x26;token=56310399-04c7-448b-8de4-79625472c673" 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.