Skip to main content

Introduction

Fenine’s Proximity Reward System is a unique 8-level referral mechanism that allows you to earn passive income from your network’s staking activity. This creates powerful viral growth incentives while rewarding early participants.
Key Benefits:
  • Earn from 8 levels of referrals
  • Up to 5% bonus APY on top of base staking
  • Automatic distribution every epoch
  • No claiming needed for proximity rewards
  • Build once, earn forever from active network

How Proximity Works

The 8-Level Tree

When someone stakes using your referral code, they become your Level 1 referral. When they refer someone, that person becomes your Level 2 referral, and so on. You earn a percentage of rewards from all 8 levels!

Reward Distribution Rates

Total: Up to 20.25% of one person’s rewards if you have all 8 levels active.

Mathematical Model

For a user uu with referral tree TuT_u, proximity rewards per epoch: Rtextproximity(u)=sumi=18sumjinLi(u)RjtimesalphaiR_{\\text{proximity}}(u) = \\sum_{i=1}^{8} \\sum_{j \\in L_i(u)} R_j \\times \\alpha_i Where:
  • Li(u)L_i(u): Set of users at level ii referred by uu
  • RjR_j: Base staking rewards earned by user jj in this epoch
  • alphai\\alpha_i: Proximity coefficient for level ii
Coefficients:
  • alpha1=0.07\\alpha_1 = 0.07 (Level 1)
  • alpha2=0.05\\alpha_2 = 0.05 (Level 2)
  • alpha3=0.03\\alpha_3 = 0.03 (Level 3)
  • alpha4=0.02\\alpha_4 = 0.02 (Level 4)
  • alpha5=0.015\\alpha_5 = 0.015 (Level 5)
  • alpha6=0.01\\alpha_6 = 0.01 (Level 6)
  • alpha7=0.005\\alpha_7 = 0.005 (Level 7)
  • alpha8=0.0025\\alpha_8 = 0.0025 (Level 8)

Getting Your Referral Code

Automatic Generation

When you first stake or delegate, a unique referral code is automatically created: Via stake.fene.app:
  1. Connect wallet
  2. Stake or delegate any amount
  3. Go to “Referrals” tab
  4. Your code is displayed
Format: 6-character alphanumeric (e.g., XYZ123)

Via Smart Contract

Setting Referrer (Using Someone’s Code)

When you stake for the first time, use a referral code: Via Interface:
  1. On delegation page
  2. Click “I have a referral code”
  3. Enter code (e.g., ABC123)
  4. Complete delegation
  5. You’re now in their proximity tree!
Via Contract:
Important: Referral code can only be set once during first stake/delegation. Cannot be changed later!

Building Your Network

Sharing Strategies

Twitter/X:
Instagram/TikTok:
  • Create tutorial video
  • Show your earnings dashboard
  • Explain proximity system visually
  • Include code in bio/description
YouTube:
  • “How I Earn 15% APY on Fenine”
  • “Passive Income with FEN Staking”
  • “Proximity Rewards Explained”
  • Code in video description

Tracking Your Referrals

Dashboard Metrics:
Via Contract:

Earnings Examples

Small Network

Setup:
  • Level 1: 5 people, avg 1,000 FEN each
  • Level 2: 3 people, avg 800 FEN each
  • All earning 10% base APY
Monthly Calculation:

Medium Network

Setup:
  • Level 1: 20 people, avg 2,000 FEN
  • Level 2: 40 people, avg 1,500 FEN
  • Level 3: 30 people, avg 1,000 FEN
  • Level 4: 15 people, avg 800 FEN
Monthly Calculation:

Large Network

Setup:
  • Levels 1-8 fully populated
  • Total network: 500+ people
  • Combined stake: 1,000,000 FEN
Monthly Projection:
Reality Check: Building a large network takes time and effort. Most users earn 2-5% additional APY from proximity.

Advanced Strategies

Compound Growth Network

Strategy: Teach referrals to refer others.
Keys to Success:
  1. Provide referral materials (templates, graphics)
  2. Educate on proximity benefits
  3. Track top performers
  4. Reward top referrers (giveaways, recognition)
  5. Build community (Discord, Telegram)

Targeted Outreach

High-Value Targets:
  • Crypto influencers
  • DeFi protocol founders
  • DAO communities
  • Investment groups
  • Trading communities
Pitch:

Content Funnel

Incentive Programs

Run Your Own Bonuses:
Fund bonuses from your proximity earnings.

Proximity Economics

Network Value Formula

The lifetime value (LTV) of one referral: textLTV=Stimesrtimesalpha1timesd\\text{LTV} = S \\times r \\times \\alpha_1 \\times d Where:
  • SS: Referral’s stake amount
  • rr: Annual staking rewards rate (10%)
  • alpha1\\alpha_1: Level 1 coefficient (0.07)
  • dd: Average staking duration (years)
Example:
  • Referral stakes 2,000 FEN
  • Stays staked 2 years
textLTV=2,000times0.10times0.07times2=28textFEN\\text{LTV} = 2,000 \\times 0.10 \\times 0.07 \\times 2 = 28 \\text{ FEN} If they refer 3 more people (Level 2 for you): textLTVtexttotal=28+(3times2,000times0.10times0.05times2)=88textFEN\\text{LTV}_{\\text{total}} = 28 + (3 \\times 2,000 \\times 0.10 \\times 0.05 \\times 2) = 88 \\text{ FEN} ROI on Referral Effort: Potentially very high!

Optimal Network Structure

Goal: Maximize depth, not just width. Bad Structure (wide, shallow):
Good Structure (deep, balanced):
How to Build Depth:
  1. Incentivize referrals to recruit
  2. Provide training and materials
  3. Track and reward top recruiters
  4. Create competitive leaderboard
  5. Share success stories

Smart Contract Integration

Check Referral Relationship

Calculate Proximity Rewards

Monitor Network Growth

Frequently Asked Questions

No. Referral relationship is set once during first stake/delegation and cannot be changed.This prevents:
  • Gaming the system
  • Circular referrals
  • Network manipulation
Choose your referrer carefully when starting!
No! Only when you claim your base staking rewards, the 10% tax applies.Proximity rewards:
  • Automatically distributed to your wallet
  • No tax on receipt
  • Can use immediately or restake
  • Only taxed if you later stake them and claim
You stop earning from them immediately. Their position in your tree remains (for tracking), but they don’t generate rewards for you anymore.If they re-stake later, you resume earning from them.
Unlimited! There’s no cap on referrals at any level.Your network can grow infinitely across all 8 levels.
Privacy: Full addresses are not publicly visible by default.Via contract:
  • You can see count per level
  • Total stake per level
  • Rewards earned per level
Referrals can choose to reveal themselves to you.
No! Key differences:Proximity is network effect monetization, not a pyramid.
Nothing. The tree stops at Level 8.Level 9 and beyond don’t generate proximity rewards for you. However, they still generate rewards for levels 1-8 above them.

Tools & Resources

Tracking Dashboard

Visit stake.fene.app/referrals:
  • Real-time network visualization
  • Earnings breakdown by level
  • Referral code generator
  • Sharing tools (Twitter, Email, Link)
  • Performance leaderboard
  • Promotional materials

Marketing Materials

Download Free Assets:
  • Banner images (Twitter, Discord, Telegram)
  • Infographics (proximity tree, APY comparison)
  • Video templates (staking tutorial)
  • Email templates (onboarding sequence)
Available at: fene.app/referral-toolkit

Analytics API

Success Stories

Sarah - Content Creator
  • Started: January 2024
  • Initial stake: 5,000 FEN
  • Strategy: YouTube tutorials
Results after 6 months:
  • Referrals: 127 people
  • Network stake: 342,000 FEN
  • Monthly proximity: 156 FEN
  • Effective APY: 37.4%
Key Tactics:
  • Weekly YouTube videos
  • Transparent earnings reports
  • Active Discord community
  • Free 1-on-1 onboarding calls

Next Steps

Get Your Code

Stake now and get referral code

Staking Overview

Learn about base staking rewards

Run a Validator

Earn commission + proximity

FPoS Architecture

Technical deep dive
Proximity Support:Top referrer prizes announced monthly! 🏆