# Distribute Token Rewards

## Overview

Token rewards let an issuer distribute a stablecoin pro rata to every holder of a TIP-20 token.
Funders distribute an amount into the reward pool, holders accrue a share proportional to their
balance, and each holder claims their accrued rewards or routes them to a chosen recipient.

[See the issuance guide](https://docs.tempo.xyz/guide/issuance)

## Recipes

These recipes assume you have [set up a Tempo client](/tempo).

### Distribute Rewards

Fund the reward pool for a token with
[`reward.distributeSync`](/tempo/actions/reward.distribute). The amount is split across all holders in
proportion to their balances.

:::code-group
```ts twoslash [example.ts]
import { parseEther } from 'viem'
import { client } from './viem.config'

const { amount, funder } = await client.reward.distributeSync({
  amount: parseEther('1000'),
  token: '0x20c0000000000000000000000000000000000001',
})
```

```ts twoslash [viem.config.ts] filename="viem.config.ts"
// [!include ~/snippets/tempo/viem.config.ts:setup]
```
:::

### Claim Rewards

Holders claim their accrued rewards with [`reward.claimSync`](/tempo/actions/reward.claim).

:::code-group
```ts twoslash [example.ts]
import { client } from './viem.config'

const { receipt } = await client.reward.claimSync({
  token: '0x20c0000000000000000000000000000000000001',
})
```

```ts twoslash [viem.config.ts] filename="viem.config.ts"
// [!include ~/snippets/tempo/viem.config.ts:setup]
```
:::

### Route Rewards to a Recipient

Direct your accrued rewards to a different address with
[`reward.setRecipientSync`](/tempo/actions/reward.setRecipient), for example to send them to a
treasury or custodian instead of the holder account.

:::code-group
```ts twoslash [example.ts]
import { client } from './viem.config'

const { recipient } = await client.reward.setRecipientSync({
  recipient: client.account.address,
  token: '0x20c0000000000000000000000000000000000001',
})
```

```ts twoslash [viem.config.ts] filename="viem.config.ts"
// [!include ~/snippets/tempo/viem.config.ts:setup]
```
:::

### Read Reward State

Check an account's pending rewards with
[`reward.getPendingRewards`](/tempo/actions/reward.getPendingRewards), inspect its full reward info
with [`reward.getUserRewardInfo`](/tempo/actions/reward.getUserRewardInfo), or read the global
accrual rate with
[`reward.getGlobalRewardPerToken`](/tempo/actions/reward.getGlobalRewardPerToken).

:::code-group
```ts twoslash [example.ts]
import { client } from './viem.config'

const pending = await client.reward.getPendingRewards({
  account: '0x742d35Cc6634C0532925a3b844Bc9e7595f0bEbb',
  token: '0x20c0000000000000000000000000000000000001',
})
```

```ts twoslash [viem.config.ts] filename="viem.config.ts"
// [!include ~/snippets/tempo/viem.config.ts:setup]
```
:::

## Best Practices

### Distribute in Regular Intervals

Smaller, frequent distributions smooth out accrual and let holders claim predictably, rather than one
large distribution that rewards only the holders present at that moment.

### Set Recipients Before Distributing

If holders route rewards to custodians or treasuries, have them call `reward.setRecipient` before the
first distribution so accrued rewards land in the right place from the start.

### Read Pending Rewards Before Claiming

Use `reward.getPendingRewards` to show users what they will receive and to skip no-op claim
transactions when the pending balance is zero.

## See More

<Cards>
  <Card icon="lucide:flame" title="Mint & Burn Tokens" description="Manage the supply that rewards accrue against." to="/tempo/guides/manage-token-balances" />

  <Card icon="lucide:coins" title="Create a TIP-20 Token" description="Deploy the token that distributes rewards." to="/tempo/guides/create-token" />

  <Card icon="lucide:square-function" title="reward.distribute" description="Distribute rewards pro rata to token holders." to="/tempo/actions/reward.distribute" />

  <Card icon="lucide:book-open" title="Tempo Docs: Issuance" description="Issue and operate a stablecoin on Tempo." to="https://docs.tempo.xyz/guide/issuance" />
</Cards>