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Bread Docs

How it Works

Give without giving.

The Bread Solidarity Fund lets you support a global network of mutual aid using only the yield your $BREAD generates. Your principal stays intact, only the earnings get shared.

The value of $BREAD is pegged to the US Dollar. Holding it will neither earn nor lose you money. What it does give you is a voice, letting you decide where the yield goes every month.

Baking and burning

Section titled “Baking and burning”

Crypto networks reward people for contributing their funds to keep things running. That reward is called yield. With $BREAD, that yield doesn’t go to you. It goes to causes the community votes on.

Deposit xDAI into the Solidarity Fund and you receive $BREAD at a 1:1 ratio. Your xDAI gets converted to sDAI in the background, generating yield. Every month, that yield is distributed to Bread’s member projects based on a community vote.

Baking is depositing xDAI to receive $BREAD.

Burning is redeeming your $BREAD back to xDAI whenever you need your funds.

The monthly distribution

Section titled “The monthly distribution”

Every month, the yield generated by the fund is distributed to member projects through a community vote. This is participatory budgeting on-chain — the same democratic approach used by progressive municipalities and cooperatives, applied to a shared treasury.

Each monthly distribution is divided into two equal halves.

The first half is split evenly across all member projects regardless of the vote. This ensures every project receives baseline support and that capital alone doesn’t determine outcomes.

The second half is distributed by token vote. $BREAD holders vote on how they want the yield allocated across the member projects. One $BREAD equals one vote.

Understanding voting power

Section titled “Understanding voting power”

Your voting power is based on the average amount of $BREAD you held over the previous month. It is not a snapshot of what you hold on voting day — it reflects your sustained participation over time.

Voting power from one month becomes available to use the following month. $BREAD held in January gives you voting power in February. This delay is a built-in safety measure: it prevents someone from baking a large amount of $BREAD just before a vote to influence the outcome.

How it’s calculated

Section titled “How it’s calculated”

Your voting power is calculated by dividing your raw accumulated voting power by the number of blocks in the previous voting period. This gives a standardised number that reflects your average $BREAD holdings over the month.

Examples

Section titled “Examples”
  • You hold 100 $BREAD for the full month. Voting power = 100.
  • You hold 100 $BREAD for the first half, then add another 100 in the second half. Voting power = 150.
  • You held 100 $BREAD last month and burned it all at the start of this month. Voting power = 100 (your previous month’s holdings still count).
  • You burned all your $BREAD more than a month ago. Voting power = 0.

Remember

Section titled “Remember”

Your vote only affects 50% of the yield distribution. The other 50% is split evenly among all member projects regardless of the vote outcome.

More information

Section titled “More information”