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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

LevelRelationshipReward ShareIf They Earn 100 FEN
1Your direct referrals7%You earn 7 FEN
2Their referrals5%You earn 5 FEN
32nd generation3%You earn 3 FEN
43rd generation2%You earn 2 FEN
54th generation1.5%You earn 1.5 FEN
65th generation1%You earn 1 FEN
76th generation0.5%You earn 0.5 FEN
87th generation0.25%You earn 0.25 FEN
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

const fenineSystem = new ethers.Contract(
  "0x0000000000000000000000000000000000001000",
  FENINE_SYSTEM_ABI,
  signer
);

// Get your referral code
const myCode = await fenineSystem.getReferralCode(myAddress);
console.log("Your code:", myCode);

// If no code exists (not staked yet), will return empty string

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:
// Delegate with referral
const tx = await fenineSystem.delegateWithReferral(
  validatorAddress,
  amount,
  "ABC123"  // Referrer's code
);

await tx.wait();
Important: Referral code can only be set once during first stake/delegation. Cannot be changed later!

Building Your Network

Sharing Strategies

Twitter/X:
💎 Stake FEN and earn up to 15% APY!

Use my code: XYZ123

✅ 10% base APY
✅ +5% proximity bonus
✅ 8 levels deep

👉 https://stake.fene.app?ref=XYZ123

#Fenine #DeFi #Staking
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:
My Referral Network
──────────────────────────────────────
Total Referrals:        47 people
Active Stakers:         39 people
Total Staked:           234,567 FEN
My Proximity Rewards:   1,234 FEN (lifetime)

Breakdown by Level:
Level 1:  12 people  →  94.5 FEN earned
Level 2:  18 people  →  67.2 FEN earned
Level 3:  10 people  →  38.4 FEN earned
Level 4:   4 people  →  15.6 FEN earned
Level 5:   2 people  →   8.3 FEN earned
Level 6:   1 person  →   2.1 FEN earned
Level 7:   0 people  →   0.0 FEN earned
Level 8:   0 people  →   0.0 FEN earned
Via Contract:
// Get referral tree
const tree = await fenineSystem.getReferralTree(myAddress);

console.log("Level 1:", tree.level1.length, "people");
console.log("Level 2:", tree.level2.length, "people");
// ... up to level 8

// Get proximity rewards earned
const rewards = await fenineSystem.getProximityRewards(myAddress);
console.log("Lifetime proximity:", ethers.formatEther(rewards));

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:
Level 1 rewards:
  5 × 1,000 × 0.10/12 × 0.07 = 2.92 FEN/month

Level 2 rewards:
  3 × 800 × 0.10/12 × 0.05 = 1.00 FEN/month

──────────────────────────────────────
Total proximity: 3.92 FEN/month

If your stake is 1,000 FEN:
  Base: 8.33 FEN/month (10% APY)
  Proximity: 3.92 FEN/month
  Total: 12.25 FEN/month

Effective APY: 14.7%

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:
L1: 20 × 2,000 × 0.10/12 × 0.07 =  23.33 FEN
L2: 40 × 1,500 × 0.10/12 × 0.05 =  25.00 FEN
L3: 30 × 1,000 × 0.10/12 × 0.03 =   7.50 FEN
L4: 15 × 800  × 0.10/12 × 0.02 =   2.00 FEN
──────────────────────────────────────
Total proximity: 57.83 FEN/month

With 5,000 FEN stake:
  Base: 41.67 FEN/month
  Proximity: 57.83 FEN/month
  Total: 99.50 FEN/month

Effective APY: 23.9%

Large Network

Setup:
  • Levels 1-8 fully populated
  • Total network: 500+ people
  • Combined stake: 1,000,000 FEN
Monthly Projection:
Estimated proximity rewards: 400+ FEN/month

With 10,000 FEN stake:
  Base: 83.33 FEN/month
  Proximity: 400 FEN/month
  Total: 483.33 FEN/month

Effective APY: 58%!
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.
You stake 10,000 FEN

├─ Level 1 (10 people): Teach them to share
│  │
│  ├─ Level 2 (30 people): Each L1 refers 3 people
│     │
│     ├─ Level 3 (90 people): Each L2 refers 3 people
│        │
│        └─ And so on...
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:
"Unlike typical referral programs:
• Earn from 8 levels (not just 1-2)
• Passive income forever
• Your network compounds
• Built into blockchain protocol
• Transparent on-chain tracking"

Content Funnel

Awareness Stage:
└─ Twitter threads about DeFi APY

Interest Stage:
└─ "Fenine vs Other Staking" blog post

Consideration Stage:
└─ YouTube tutorial with earnings proof

Conversion Stage:
└─ Email list with referral code
   └─ Drip campaign teaching how to stake

Retention Stage:
└─ Monthly earnings newsletter
   └─ Encourage them to refer

Incentive Programs

Run Your Own Bonuses:
🎁 My Referral Bonus Program

Use code XYZ123 and stake 1,000+ FEN:

• 1st month: I'll send you 50 FEN bonus
• 3rd month: Another 50 FEN if still staked
• 6th month: 100 FEN bonus

+ Exclusive Discord access
+ Weekly market analysis
+ 1-on-1 onboarding call
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):
You
├─ 100 Level 1 referrals
└─ 0 Level 2+ referrals

Earnings: Only 7% of their rewards
Good Structure (deep, balanced):
You
├─ 20 Level 1
│  ├─ 40 Level 2
│     ├─ 60 Level 3
│        ├─ 40 Level 4
│           └─ ... levels 5-8

Earnings: 20.25% across all levels
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

// Check who referred you
const myReferrer = await fenineSystem.getReferrer(myAddress);
console.log("Referred by:", myReferrer);

// Check if someone used your code
const theirReferrer = await fenineSystem.getReferrer(theirAddress);
if (theirReferrer === myAddress) {
  console.log("They're in your Level 1!");
}

Calculate Proximity Rewards

// Get proximity rewards breakdown
const breakdown = await fenineSystem.getProximityBreakdown(myAddress);

console.log("Level 1 rewards:", ethers.formatEther(breakdown.level1));
console.log("Level 2 rewards:", ethers.formatEther(breakdown.level2));
// ... up to level 8

// Total proximity rewards
const total = await fenineSystem.getProximityRewards(myAddress);
console.log("Total earned:", ethers.formatEther(total));

Monitor Network Growth

// Get referral count by level
const counts = await fenineSystem.getReferralCounts(myAddress);

console.log("My Network:");
for (let i = 1; i <= 8; i++) {
  console.log(`  Level ${i}: ${counts[i-1]} people`);
}

// Get total staked in your network
const networkStake = await fenineSystem.getNetworkStake(myAddress);
console.log("Total network stake:", ethers.formatEther(networkStake));

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:
Pyramid SchemeFenine Proximity
Recruitment requiredOptional, rewards exist without it
Money flows upRewards from protocol, not users
UnsustainableFunded by block emissions
Early joiners drain lateEveryone earns proportionally
Eventual collapseSustainable economics
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

// Example API call
const response = await fetch('https://api.fene.app/referrals/XYZ123');
const data = await response.json();

console.log("Network stats:", data);
// {
//   code: "XYZ123",
//   totalReferrals: 47,
//   activeStakers: 39,
//   totalStaked: "234567000000000000000000",
//   lifetimeRewards: "1234000000000000000000",
//   levelBreakdown: [...]
// }

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! 🏆