# Distribution Process

### (Simplified) Value Generation & Distribution Flow

![Visual reference chart. Click to Enlarge](https://3298173338-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MQwWZOu4BVfktUx1sVY%2F-MUD_4V338TH9gO4W6xL%2F-MUEhOiNLRc1N4uAp7_g%2Fimage.png?alt=media\&token=7cf97479-c0b6-4739-9322-d464f488961b)

### Money & Points Generation

1. **Users generate revenue** for the platform through fee-bearing activity, such as executing trade orders. Revenue is expended to sustain and operate the Company, then moves on to **Primary Distribution**.<br>
2. **Users** also **earn** [**Glory Points**](https://cryptoarena.gitbook.io/docs/basics/services/gamification) **with all fee-bearing activity**, this is a weighted measure of individual performance and of the value created for the network, taking into account various factors (e.g. volumes, profitability, continued performance, cooperation, and more)

### Primary Distributions

Primary Distributions depend on the allocations of [**ARENA Security Tokens**](https://cryptoarena.gitbook.io/docs/security-tokens). (formerly LEOs)

The tokens function as “beacons” for our systems, indicating where and how much revenue to send \
(e.g. 1% -> 1%). Tokens feature built-in conditions and limitations to ensure security and intended delivery.

1. The **Holders** allocation represents all outstanding ARENA Security Token Holders,&#x20;
2. the **BuyBack Bonus** is the fund through which Holders accrue their [**extra revenue stream**](https://cryptoarena.gitbook.io/docs/self-decentralization/how-it-works/bbb),&#x20;
3. and the **Revenue Sharing** represents the cumulative funds that will be shared by every qualifying user of the platform at the end of each period (monthly) based on their Glory Scores.

### Secondary Distributions

Secondary Distributions depend on the [**Glory Score**](https://cryptoarena.gitbook.io/docs/basics/services/glory) of every qualifying User.\
The Glory Points you accumulate from activity are tallied into your Glory Score at the end of each **Month**.

The weight of your Score, in relation to that of every other User that has one, determines every individual’s share of the funds distributed by the Revenue Sharing allocation. Scores reset after every distribution.

All payouts are disbursed in arrears, on a "next month" basis.

### Incremental Distributions

The [**BuyBack Bonus**](https://cryptoarena.gitbook.io/docs/self-decentralization/how-it-works/bbb) is the "pivot" that causes change within the system by changing the allocation of [**ARENA Security Tokens**](https://cryptoarena.gitbook.io/docs/security-tokens), and thus **changing the weight** of Primary Distributions.&#x20;

BuyBacks can only be **claimed on Exit**, thus whenever a Holder claims the bonus, portions of token supply move from private Holders to the automated Revenue Sharing, and because of the Tokens’ function as beacons for distribution, the allocation growing in size directly implies a greater share of Net Revenue from all subsequent primary distributions.