Reward Split & Token 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.

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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 must be claimed manually.

Claiming Protocol Rewards

To withdraw funds:

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.

Note:

This interface and documentation will be integrated into the app UI (see #513) and deployment guide will be updated accordingly.

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

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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	BaseScan Contract UI	Admin tab in nouns.build UI