# Revenue Calculation & Distribution

> For each qualifying cycle, 5% of positive distributable net product revenue is assigned to the Hazels RWA Pool and divided by Holder/Staker weight.

For each qualifying RWA reporting cycle beginning with the operational rollout scheduled for Q1 2027, 5% of positive distributable net product revenue is assigned to the Hazels RWA Pool.

```text title="rwa-pool"
Hazels RWA Pool = MAX(0, Positive Distributable Net Product Revenue) x 5%
```

```text title="distributable-net"
Distributable Net Product Revenue = Gross Collected Product Revenue
  - Manufacturing - Packaging & Fulfilment
  - Retail/Marketplace Fees - Shipping Subsidies
  - Returns/Refunds - Taxes/Duties
  - Licensing/Partner Royalties - Marketing Costs
  - Approved Operating Reserves
```

| **Illustrative product cycle** | **Amount** |
| --- | --- |
| Gross collected product revenue | 500,000 |
| Manufacturing and packaging | -140,000 |
| Fulfilment and logistics | -55,000 |
| Retail and marketplace fees | -60,000 |
| Returns, taxes and duties | -35,000 |
| Licensing, marketing and reserves | -60,000 |
| Positive distributable net product revenue | 150,000 |
| Hazels RWA Pool — 5% | 7,500 |

The figures above are illustrative and do not represent guaranteed product performance.

## Holder and Staker distribution weight

| **Position** | **Base weight per NFT** |
| --- | --- |
| Verified Holder | 1.00 |
| Active Staker | 2.00 |

Reward weight is capped at five eligible Hazels NFTs per wallet.

| **Eligible NFTs** | **Holder weight** | **Active Staker weight** |
| --- | --- | --- |
| 1 | 1.00 | 2.00 |
| 2 | 2.00 | 4.00 |
| 3 | 3.00 | 6.00 |
| 4 | 4.00 | 8.00 |
| 5 or more | 5.00 | 10.00 |

```text title="wallet-share"
Wallet Share = Wallet Eligibility Weight / Total Eligibility Weight
Wallet Reward = Hazels RWA Pool x Wallet Share
```