> For the complete documentation index, see [llms.txt](https://docs.bancor.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bancor.network/about-bancor-network/resources-for-daos/liquidity-mining/auto-compounding-rewards/how-to-create-an-auto-compounding-rewards-program.md).

# How to Create an Auto Compounding Rewards Program

This section explains how to create an Auto Compounding Rewards Program using available bnTokens in your wallet.

{% hint style="info" %}
You will need to first add liquidity (deposit) to the pool to receive bnTokens
{% endhint %}

### Transfer bnTokens to the rewards contract

This section explains how to transfer bnTokens to the Auto Compounding Rewards contract:

1. Open your wallet and select the bnToken that will be given as rewards
2. Set the *`ExternalRewardsVault`* ([on etherscan](https://etherscan.io/address/0x2A2A2BE5cCf20F3633c6ca2D429Ac51186a631e1#readProxyContract)) contract address as the recipient  
3. Enter the number of bnTokens to transfer:\
   ![](/files/DsMxdvpFdOyYnfV2Y9zv)
4. Transfer the bnTokens

Once pool tokens have been sent, the DAO multisig will set them up for distribution according to the [default rewards schedule](#default-rewards-schedule), **unless a custom rewards schedule has been communicated beforehand**. See [Custom Rewards Programs](/about-bancor-network/resources-for-daos/liquidity-mining/auto-compounding-rewards/custom-rewards-programs.md) for more details. 

### Default Rewards Schedule

The default rewards schedule is:

* Length: 1 year
* Distribution: Linear (flat) 

This means that rewards would be distributed equally over a 1-year time span.

```
Example:
Assume 50,000 bnTokens were transferred
Emission would be:
50,000 bnTokens / 365 days = 136.9863013699 bnTokens per day 
```

### Reward Implementation by the DAO

The [DAO multisig](/about-bancor-network/security-and-audits/dao-msig-intervention-policy.md) implements required tasks, such as rewards programs, periodically (typically twice a week).

Once implemented, the program will start and value will start moving to the liquidity providers.