# Crowdfunding

## What is a crowdfunding **protocol?**

**The crowdfunding protocol is a value-creating strategy designed by Recovery for users.** Users can participate in crowdfunding through the mechanism set by the protocol to help **burn REC**, so as to obtain the distribution rewards of the next crowdfunding funds.

The crowdfunding protocol is based on nodes, and one phase is carried out every day, and the crowdfunding funds of each phase are 104% of the previous phase.

Example

> The first crowdfunding amount is $10,000 
>
> The second crowdfunding amount is $10,400 
>
> The third crowdfunding amount is $10,816 
>
> The fourth crowdfunding amount is $11,248.64(11,249)

## How the protocol will allocate the additional 4%?

* Sharing reward: 1.4% 
* Node reward: 1.2% 
* Crowdfunding reward: 0.8% 
* Staking reward: 0.3% 
* Burn: 0.3%

## When is crowdfunding time?

Queuing time for new users from **12:00-14:00 SGT**

Queuing time for all users from **14:00-16:00 SGT**

Public crowdfunding time is from **16:00-22:00 SGT**

## What is the difference between queuing and public crowdfunding?

The maximum limit for queuing up to participate in crowdfunding is 1% of the total amount of crowdfunding, and there is no limit to the amount of participation in public crowdfunding.

Users who participate in the queuing will be given priority in crowdfunding. When the accumulated amount in the queue is not enough to meet the total amount of crowdfunding, the public crowdfunding will get the remaining crowdfunding amount.

Users who participate in the queue can still participate in public crowdfunding.

## Safeguard mechanism

We know that continuous growth will bring about economic bubbles, in addition to that, crowdfunding may fail due to many other factors, so we have established a guarantee mechanism, and users can refer to ([Mining](https://docs.recoverydao.org/products/mining)) to learn about our specific measures.