> For the complete documentation index, see [llms.txt](https://docs.roamfi.net/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.roamfi.net/tokenomics/referral-incentive-distribution-mechanism.md).

# Referral Incentive Distribution Mechanism

To encourage users to share RoamFi services, drive organic growth, and build a sustainable referral network, RoamFi introduces a **multi-tier token reward system** based on hierarchical relationships.

Whenever token rewards are generated from fiat-based purchases within the RoamFi ecosystem, a portion of those rewards is automatically distributed to the user’s referrers (uplines), establishing a **self-propagating incentive model** that supports long-term ecosystem expansion.

### Reward Distribution Ratio

Each transaction that generates token rewards will be distributed as follows:

| Role             | Distribution Ratio |
| ---------------- | ------------------ |
| Consumer         | 80.0%              |
| Level 1 Referral | 16.0%              |
| Level 2 Referral | 3.3%               |
| Level 3 Referral | 0.6%               |
| Level 4 Referral | 0.1%               |

**Notes:**

* Tokens are distributed instantly according to the ratios above, while the upline-downline binding relationship remains valid for **three years**.
* If a user joins RoamFi without a referral, the corresponding upline reward portion is **donated to the ecosystem pool**, to be used for future ecosystem incentives and development initiatives.

This **referral fission model** is designed to:

* Encourage early users to actively share and promote RoamFi.
* Build a network of users based on trust and mutual benefit.
* Increase user engagement, retention, and platform activity.
* Expand RoamFi’s influence through social recommendations, achieving **low-cost, high-efficiency growth**.