In FundLoop, value flows in a continuous cycle between projects and people. Each month, participating projects contribute 1% of their revenue. These funds are then distributed as citizen salaries to active, verified users. But how does that distribution actually work?

Let’s break it down—for both users and projects.

For Users: What You Get and Why

Your monthly citizen salary depends on two things:

• How many FundLoop projects you actively use
• How well you've validated your identity through Cubid

The more projects you engage with—and the more verified you are—the more you're eligible to receive. But even light participation in a single project can unlock value. You don’t have to be everywhere, just active and human.

For Projects: What You Control and What You Influence

As a project, you decide which users are contributing value to your platform. Each month, you can:

• Nominate users
• Assign each a **participation fraction** between 0 and 1
• Set aside a portion of your 1% contribution for them

This creates a direct line between your project’s success and the value returned to your most important community members.

But FundLoop doesn’t stop there. It ensures all contributions feed into a larger ecosystem. Here’s how that works.

The Two-Pass System: How FundLoop Distributes Value

Each month, FundLoop runs a two-step distribution process to fairly allocate the 1% contributions from all projects.

**First Pass: Project-Based Distribution**

Each project starts by distributing its contribution to the users it nominated:

• Users are assigned a **fractional weight** (between 0 and 1) based on their participation
• The project’s total contribution is divided accordingly
• To be eligible, a user must meet a **minimum level of identity verification** via Cubid

If a user is nominated by multiple projects, they only receive the highest value among those offers in the first pass. Any overlapping amounts they would have received from other projects are returned to the communal pool for redistribution.

This means:

• Every user gets at least what one project assigned to them
• Projects are guaranteed that their contributions benefit their chosen users
• Duplicates don’t lead to users being overpaid

**Second Pass: Ecosystem-Based Redistribution**

The remaining communal pool is then distributed to all eligible users—not based on fractions, but on network engagement.

Each user earns a share of the pool based on:

• The **number of FundLoop projects** they participated in during the month
• Weighted using a square root function (so 3 projects isn’t 3x better than 1, but still counts more)

This second pass encourages users to explore and support more apps—without penalizing those who only use one. It also creates a gentle incentive curve: deeper participation = more reward, but without centralizing value in power users.

Why This Matters

This two-layered approach ensures:

• **Reliability**: Projects can reward their users directly and predictably
• **Fairness**: No one gets double-paid for overlapping activity
• **Regeneration**: Extra funds go back into the system to reward community engagement
• **Balance**: Power users are rewarded, but not disproportionately

Closing Thoughts

Citizen salaries are more than payouts—they’re how FundLoop aligns incentives, sustains ecosystems, and makes digital participation meaningful. The math behind the system isn’t designed to extract—it’s designed to include, reward, and regenerate.

Whether you're a project contributing or a person participating, you're helping build an economy where value flows both ways—and keeps growing.