# Loyalty Rewards (Buy-backs)

500,000 $LOOP (With a 1% decay starting from 18th July 2025) will be distributed every week to the most loyal holders via Loyalty Rewards.\
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Performance fees are applied to all Looping Collective Products. These fee will be used strategically to strengthen the value of $LOOP and incentivize long-term alignment.

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To qualify for Loyalty Rewards, you must hold a position in LHYPE and/or WHLP, as well as at least 5,000 stLOOP (staked LOOP). 
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### How it works

* **Buybacks:**\
  The performance fee from all Looping Collective Products will be used to buy back $LOOP on the open market. 
  * A **20% performance fee** is applied to LHYPE (factored into the APY).
  * A 1**0% performance fee** is applied to wHLP (factored into the APY).
* **Loyalty Rewards Allocation:**\
  All $LOOP acquired through buy-backs will initially be excluded from circulating supply and held in the LOOP Loyalty Rewards Fund.
* **Loyalty Rewards Distribution:**

  $LOOP is automatically airdropped every Friday to eligible users - not signing or claiming is needed. Your loyalty reward amount is calculated based on both your accumulated points history and points generated today. [Looping Modes](https://docs.loopingcollective.org/loop-utility/airdrop-multipliers#looping-modes-and-multipliers) unlock points multiplier for the Loyalty Program.

#### Goals

* Increase demand for $LOOP via consistent market buybacks
* Create long-term alignment with users and builders
* Reduce sell pressure by conditioning distribution on price thresholds
* Build a sustainable and value-accretive rewards system