> For the complete documentation index, see [llms.txt](https://coinada.gitbook.io/coinada/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://coinada.gitbook.io/coinada/features/earn-ada.md).

# Earn ADA

Rewards are automatically distributed to anyone holding a minimum amount of CoinADA tokens.

Each $CoinADA holder is automatically eligible to receive ADA from the reward pool. The contract will set aside a number of BNB tokens for the reward pool by using a portion of the tax levied on each transaction (7%).

After a certain amount of tokens are stored in the contract (0.0001% of the total supply) it initiates a swap. In this context, a swap is the process of exchanging the contract's token balance for BNBs in order to increase the reward pool and provide liquidity.

After the first time a holder receives $CoinADA tokens, each holder is assigned a claim date (either through purchasing or receiving from someone else). Holders automatically receive their share of the $ADA pool on the claim date, thanks to the contract. The claim date advances to the future after they receive their reward, starting a new cycle.

The amount of $BNB available from the reward pool is determined by the following factors:

1. **The amount of $CoinADA a holder owns:** If a holder owns 1% of the total available supply, they will be eligible for up to 1% of the total  $ADA available in the reward pool.
2. **The amount of $ADA in the reward pool:** As more taxes are received from the contract, this increases, and as holders receive their share, it decreases.

**Note:** Holders must have at least 20,000 tokens in their wallet to be eligible for rewards. This may change as the price fluctuates.