Rewards Allocation Policy
Last updated: September 1st 2025
This Rewards Allocation Policy (“Policy”) describes how LongBoat Digital LLC (“LongBoat,” “we,” “us”) manages and allocates container lease income to support discretionary network rewards for LongBoat NFT holders.
The Policy is designed to increase transparency and demonstrate LongBoat’s commitment to prioritizing participants. It is not a guarantee of fixed investment returns, but a framework for how income is reserved and distributed.
1. Scope of the Policy
This Policy applies to all rewards distributed to holders of LongBoat NFTs (Node Licenses/Collectibles).
Rewards are sourced from lease income generated by containers owned by LongBoat Operations Ltd (BVI).
Rewards remain variable and discretionary, but lease income is ring-fenced to ensure availability.
2. Reward Allocation Commitment
From all lease income received, LongBoat always allocates the equivalent of 21.6% APY into a dedicated reward allocation pot. Investors can check this at any time by looking at the wallet used for Reward Payout shared in the Transparency Dashboard.
This ensures that lease revenues cannot be diverted into unrelated uses and that the funds for network rewards are preserved.
3. User Participation & Reward Range
For NFTs issued after the date of this Policy, participants who perform required Monitoring Actions may receive up to 20% annualized rewards.
Users who do not consistently perform actions may receive a reduced rate, but no less than 19% annualized rewards.
NFTs purchased before this Policy was enacted (“Grandfathered NFTs”) remain eligible for a historical maximum of up to 21.6% annualized rewards, depending on participation.
The remaining portion of the 21.6% allocation not distributed to users is retained in the Strategic Reserve.
4. Strategic Reserve
Any portion of the 21.6% allocation not distributed to users is placed into a Strategic Reserve.
The Strategic Reserve may be used to acquire or support assets that strengthen LongBoat’s long-term financial stability and reinforce its growth flywheel.
This may include, but is not limited to, purchasing additional containers, expanding infrastructure, or other initiatives that enhance the resilience of the LongBoat ecosystem.
The Strategic Reserve Wallet is shared on LongBoat's Transparency Dashboard for monitoring.
5. Transparency
LongBoat will disclose, via the Transparency Dashboard:
Total lease revenues (aggregated, not contract-by-contract).
Allocation to reward pot and strategic reserve.
Historical reward distributions.
6. Limitations & Disclaimers
Rewards are not guaranteed investment returns.
The Policy demonstrates LongBoat’s operational intent to ring-fence lease income for rewards but does not constitute a contractual obligation enforceable as debt or security.
Rewards may vary based on user participation, operational performance, and network conditions.
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