How DiamondHolders Works
A deep dive into the protocol mechanics, fee distribution, and tokenomics that reward loyal holders and punish jeets.
The Problem
In typical token launches, early holders dump their bags as soon as price rises, crashing momentum and hurting the community. Trading fees accumulate in vaults but benefit everyone equally — regardless of whether they held or jeet'd. There's no incentive to hold.
The protocol redirects accumulated trading fees exclusively to wallets that held through the entire distribution period. Sell too much during the tracking window and you're disqualified — your share gets redistributed to the remaining diamond hands. The more jeets bail, the bigger the payout for those who stay.
Period Lifecycle
Each distribution cycle follows a strict sequence of phases.
Pre Ex-Dividend
The quiet phase before tracking begins. Fees accumulate in the vault while the system waits for the ex-dividend date. Holders are free to buy and sell without consequence during this window.
Ex-Dividend Snapshot
At the ex-dividend date, the protocol takes a snapshot of all token holders and their balances. This becomes the baseline for tracking. From this moment, every wallet is being watched.
Tracking
The critical holding period. On-chain balances are monitored in real-time via Helius webhooks and periodic reconciliation. Any wallet that sells beyond the configured sell tolerance is immediately disqualified and added to the Wall of Shame.
Distribution
Accumulated trading fees are claimed from the vault, protocol and creator fees are deducted, and the remaining pool is distributed pro-rata to all qualifying holders based on their snapshot balances.
Sell Detection
Two layers of monitoring ensure no sell goes undetected.
Real-Time Webhooks
Helius webhooks fire on every token transfer. When a tracked wallet's balance decreases, the sell is detected within seconds and the holder is flagged for disqualification evaluation.
Periodic Reconciliation
Every 30 minutes, on-chain balances are fetched via the DAS API and compared to the database. Any discrepancy triggers a two-pass healing process to catch missed sells and ensure data integrity.
Sell Tolerance
Creators configure a sell tolerance (in basis points) when onboarding their token. For example, a tolerance of 500 bps (5%) means holders can sell up to 5% of their snapshot balance without being disqualified. Sells are tracked cumulatively — three sells of 2% each would total 6%, exceeding a 5% tolerance.
Fee Distribution & Tokenomics
How trading fees flow from the vault to diamond-hand holders.
Fee Flow
Trading fees accumulate
Every trade on the token generates fees in the vault wallet
Fees claimed at distribution
The protocol claims accumulated fees from the vault when a period ends
Fee split applied
Protocol fee is deducted first, then the remainder splits between creator and holders
Pro-rata distribution
Holders' share is divided proportionally by snapshot balance among all qualifying wallets
Creator Tiers
Free
Weekly
SOL Direct
Pro
Coming SoonWeekly, Biweekly, Monthly
SOL Direct, Buyback TWAP
Elite
Coming SoonWeekly, Biweekly, Monthly
SOL Direct, Buyback TWAP
Distribution Modes
Creators choose how rewards reach their holders.
SOL Direct
The simplest mode. Accumulated SOL fees are sent directly to qualifying holders' wallets in batched transactions (up to 50 transfers per transaction). Holders receive SOL immediately when distribution runs.
Buyback TWAP
Instead of distributing SOL, the protocol uses accumulated fees to buy back the token via time-weighted average price execution — 12 chunks spread over 24 hours (one every 2 hours). The purchased tokens are then distributed pro-rata to qualifying holders.
Under the Hood
The background systems that keep everything running.
Period Manager
Runs every minute to check period dates and automatically transition phases: pre-exdiv to tracking to distributing.
Fee Claimer
Hourly worker that claims accumulated trading fees from the vault and records fee snapshots for each active token.
Sell Processor
Event-driven worker triggered by Helius webhooks. Processes token balance decreases and evaluates disqualification rules.
Reconciliation
Every 30 minutes, fetches on-chain balances and runs two-pass healing to catch any sells the webhook might have missed.
Distribution Processor
Handles end-to-end distribution: final reconciliation, fee claiming, share calculation, and batched SOL transfers.
Buyback Processor
For TWAP mode: executes 12 buy chunks over 24 hours at 2-hour intervals, then distributes purchased tokens.
Wall of Shame
Public accountability for paper hands.
Every disqualified wallet is publicly displayed on the token's Wall of Shame. The page shows exactly how much they sold, what percentage of their holdings they dumped, and the payout they missed out on. It's a permanent record of paper-hand behavior — and a strong incentive to hold.
Sell Amount
Tracked
Sell %
Recorded
Missed Payout
Calculated