Rewards Engine

The Rewards Engine automates tracking, calculation, and distribution of custody rewards for Paxos-issued stablecoins. You can interact through the Paxos Dashboard, the API, or both.

How It Works

Rewards flow through six stages:

Key Concepts

Concept	Description
Reward address	A blockchain address submitted for monitoring. Daily balance snapshots determine the rewards earned.
Payout group	A collection of reward addresses that accumulate rewards collectively and pay out to a single destination address. Payout groups are chain- and jurisdiction-specific.
Claim schedule	Defines when and how your organization receives reward payouts.
Claim	A single reward payout event generated according to a claim schedule.
Jurisdiction	Each payout group carries an EU or non-EU designation that maps to the applicable contractual earnings rate.

On-chain vs Off-chain Rewards

The Rewards Engine supports two payout modes. Understanding which applies to your integration determines how claims are executed.

Mode	How rewards are calculated	How payouts are executed
Off-chain	Paxos calculates rewards based on daily balance snapshots	Paxos executes the payout directly — no signing required
On-chain	Rewards accumulate daily in a smart contract on an EVM chain	The `claimer_address` signs and submits the claim transaction directly to the contract

The mode is determined by the blockchain and asset combination — your account configuration specifies which applies to each payout group.

Plan around these constraints before integrating.

Claims run on a claim schedule you configure (daily, weekly, or monthly) — manual triggers are not available today.
No retroactive claims. Wallets only accrue rewards once they reach ACTIVE status — submission alone is not the start of accrual.
Reward addresses must be assigned to a payout group and reach ACTIVE status to accrue rewards.
Payout groups are chain-specific. Create a separate group for each blockchain you hold stablecoins on.

Prerequisites

Authentication

You need a bearer token. See Authenticate for setup instructions.

curl --location 'https://oauth.sandbox.paxos.com/oauth2/token' \
  --form grant_type=client_credentials \
  --form client_id={client_id} \
  --form client_secret={client_secret} \
  --form scope='rewards:create_payout_groups rewards:write_monitoring_address rewards:read_rewards_details rewards:read_claims'

Required Scopes

The following scopes are sufficient to complete the steps in this guide. Additional scopes exist for other Rewards Engine operations — each API reference page lists the scope required for that specific endpoint.

Scope	Purpose
`rewards:create_payout_groups`	Create payout groups and their claim schedules
`rewards:write_monitoring_address`	Register reward addresses
`rewards:read_rewards_details`	View current rates and lifetime earnings
`rewards:read_claims`	List claim history

Scopes for each endpoint are listed in the Authorizations section in the API Reference.

API Reference

API Section	Description
Payout Groups	Create and manage payout groups
Claims	Claim schedules and payout history
Reward Addresses	Register and manage monitored addresses
Reward Details	Current rates, earnings, and accruals
Statements	Monthly reward statements

Get Started

Create a Payout Group

Define where rewards are sent, at what rate, and on what schedule

Register Reward Addresses

Submit blockchain addresses for monitoring

Monitor Reward Details

Check rates, accruals, and available rewards

View Claims

Track payout history and claim status

Download Statements

Access monthly reward statements

Questions? Contact Support.

Get Started

Identity

Travel Rule

Stablecoin Orchestration

Fiat Transfers

Address Verification

Stablecoin Payments

Crypto Brokerage

Webhooks

Additional Guides

Versioning

Rewards Engine

How It Works

Key Concepts

On-chain vs Off-chain Rewards

Prerequisites

Authentication

Required Scopes

API Reference

Get Started

Create a Payout Group

Register Reward Addresses

Monitor Reward Details

View Claims

Download Statements

​How It Works

​Key Concepts

​On-chain vs Off-chain Rewards

​Prerequisites

​Authentication

​Required Scopes

​API Reference

​Get Started

Create a Payout Group

Register Reward Addresses

Monitor Reward Details

View Claims

Download Statements

How It Works

Key Concepts

On-chain vs Off-chain Rewards

Prerequisites

Authentication

Required Scopes

API Reference

Get Started