# Incentivization program

To encourage participation in the Shift DeFi ecosystem, an incentivization program is introduced. In addition to yield generated from vault deposits, users receive rewards in SHIFT tokens.

The program is structured into seasons, each followed by an airdrop. The allocation of SHIFT tokens for each season is determined in advance based on market conditions. Distribution is front-loaded, with earlier seasons expected to have larger allocations to incentivize early participation.

During the first year after launch, four airdrop seasons are planned, with approximately 7.5% of the total supply distributed (around one quarter of the Community & Rewards allocation). Final amounts may be adjusted depending on market conditions.

Users earn points throughout each season before receiving SHIFT tokens. Points accrue over time based on the number of vault shares held. At the end of the season, a snapshot is taken, and SHIFT tokens are distributed proportionally according to the total points accumulated by each user.

#### Additional rewards

Additional reward programs may be introduced to further align user behavior with the objectives of the Shift DeFi ecosystem.

Before each airdrop season, any additional reward mechanisms applicable to specific vaults will be defined in advance. These may include:

* Higher point accrual for larger deposits, encouraging meaningful capital allocation
* Higher point accrual for time-locked deposits, particularly in vaults with more complex strategies, higher entry and exit costs and longer unwinding periods. It is designed to incentivize long-term participation where it is structurally beneficial.


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