Founder Rewards Allocation

Understanding the difference between Reward Splits vs. Token Allocations

When deploying a DAO with Nouns Builder, there are two distinct settings that govern how funds and tokens are distributed. These are often confused but are technically and operationally separate.

This guide explains the key differences between protocol-level auction reward splits and configurable token allocations, and provides instructions for withdrawing funds from the Rewards contract.

1. Auction Rewards (Protocol-Level Split)

When a DAO is deployed, a fixed portion of auction proceeds is routed to a designated Rewards Recipient. This address is set at deployment and cannot be changed later. It is part of the protocol logic.

These rewards accumulate in the Builder Protocol Rewards contract and can be claimed via the Builder frontend.

The Auction Rewards section displays the following splits with tooltips:

• Builder Rewards: Rewards paid to Nouns Builder for maintaining the DAO’s core infrastructure and tooling. (2.50%)
• Referral Rewards: Rewards paid to users who refer new bidders to auctions, or to developers integrating referrals into external UIs. (2.50%)
• Founder Rewards: Rewards paid to the DAO founders for their role in creating the DAO. (e.g., 50.00%)

The Recipient address and Balance are shown below, along with a Withdraw button. Note that the Recipient and Balance are not displayed if the Founder Rewards Split Percentage is set at 0.

Claiming Protocol Rewards

To withdraw funds:

1. Navigate to the Auction Rewards section in your DAO’s dashboard.
2. Ensure you are connected with the wallet that controls the Rewards Recipient address.
3. Review the current Balance.
4. Click the Withdraw button to claim the full accumulated ETH rewards.

Note:

If the Founder Rewards Split is set at 0, no Recipient or Balance will be displayed, and no withdrawal is available.

Alternatively, for manual claiming via contract interaction:

1. Go to the Rewards Contract on BaseScan
2. Connect your wallet via “Connect to Web3”
3. Navigate to the Write Contract tab
4. Use function #5 withdrawFor(address recipient, uint256 amount)
5. For recipient, input the DAO’s reward address (typically your treasury or multisig)
   • Example only: 0x894F30da29216516b5aE85207dED77038C107f22 (used by nouns.build — do not use this for your DAO)
6. For amount, input 0 — this will sweep the full balance owed.

2. Token Allocations (Configurable)

Token Allocations allow a DAO to automatically allocate a percentage of newly minted NFTs to one or more addresses. This setting can be configured or updated via the Admin tab in the app UI.

These allocations are not related to the ETH collected from auctions. Instead, they govern who receives minted NFTs and in what proportion.

Common Use Cases

• Allocating tokens to contributors
• Reserving a percentage for community treasury
• Routing mints to sub-DAOs or partnerships

Summary

Feature	Auction Rewards	Token Allocations
Funds or Tokens?	ETH from auction proceeds	ERC-721 NFTs
Configurable?	No (hardcoded at DAO deployment)	Yes (configurable via UI)
Purpose	Sends ETH to reward address	Sends NFTs to allocation addresses
Where to Manage	Auction Rewards section in DAO dashboard	Admin tab in nouns.build UI