GUIDE 02 / 05
SPY rewards
The reward asset, the source of the SPY budget and what your allocation represents.
What SPY represents
SPY is State Street’s SPDR S&P 500 ETF Trust. It tracks the S&P 500 index, representing large U.S. companies across multiple sectors.
The reward asset used here is Robinhood’s SPY Stock Token on Robinhood Chain. It provides economic exposure to the ETF through the issuer’s tokenized security structure.
How trading funds the vault
A 0.25% creator tax on PASSIVE buys and sells generates creator revenue in SPY. Creator revenue that reaches the reward vault can be assigned to holder allocations.
For a simple illustration, a creator-tax calculation on 100 SPY produces 0.25 SPY of creator tax. That example isolates the creator tax; it is not a quote for the complete swap.
Trading rewards and ETF dividends
The SPY distributed by PASSIVE comes from trading-fee revenue. It is not a direct pass-through of the ETF’s cash dividend payments.
Holding PASSIVE gives you eligibility for allocated SPY rewards. It does not turn PASSIVE itself into a redeemable ETF share or a claim on every asset in the vault.
A token amount, not a fixed dollar amount
An allocation is recorded as a quantity of SPY tokens. If your allocation is 1 SPY, the claim transfers that quantity. Its market value can change between allocation and claiming.
A dollar estimate, where available, is a valuation of the token amount. It is not a separate dollar balance or a promise to pay that dollar amount.
Revenue available for a period
The publisher chooses a SPY budget from funds that are available and not already reserved for previous allocations. A period’s budget can therefore be smaller than the vault’s total SPY balance.
Revenue collected later can fund another period. A large vault balance alone does not tell you how much will be allocated to your wallet.
When SPY becomes claimable
Fees being collected and rewards being claimable are separate events. The period must be calculated and its funded allocation published before holders can claim.
There is currently no automatic publication interval configured. Rewards do not become claimable on a five-minute timer. The dashboard shows allocations once they are published.