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

# Recovery Participation Rewards

### Reward Flow

1. Validate eligible legacy balances
2. Deposit equivalent USDC (50%)
3. Recovery Balance enters the reward pool
4. Earn monthly rewards (2%–5%)
5. Rewards end upon reaching 2× cap
6. Users can re-enter by purchasing a new license

<figure><img src="/files/FnZFKlOQLVtOIcmOWPT0" alt="" width="375"><figcaption></figcaption></figure>

### Web2 + Web3 Integration

The Recovery Republic merges the simplicity of Web2 with the transparency and ownership of Web3, delivering the best of both worlds in one seamless system.

Web2 represents the traditional internet we use daily — familiar platforms like social media, e-commerce sites, and centralized apps. In Web2 environments, companies control user data, account management, and information flow. It’s easy to use but lacks personal ownership of data or assets.

Web3, on the other hand, introduces decentralization. It uses blockchain, smart contracts, and crypto assets to give users true control, transparency, and ownership of their data and digital identity. In Web3, systems are community-driven rather than owned by a single company.

By combining both models, the Recovery Republic ensures:

* 🧩 Ease of use — A smooth, intuitive Web2-like interface for simple onboarding and navigation.
* 🔗 Decentralized control — Users retain ownership of their data and digital assets via blockchain validation.
* 💎 Transparency & trust — Every transaction and reward can be verified on-chain in real time.
* 💬 Community participation — Users can engage, contribute, and grow within a transparent digital ecosystem.

This hybrid approach ensures that even users new to decentralized technology can interact easily — enjoying the usability of Web2 and the security and ownership of Web3.

### Key Reward Principles

* Recovery Balances are non-transferable and non-withdrawable.
* Rewards are blockchain-verified and transparently displayed in the dashboard.
* Earnings are subject to the active license and its reward cap.
* You can renew or upgrade your license anytime to continue participation.


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