# How It Works?

Squads uses a multi-generational referral approach that rewards you not just for your direct referrals but also for the entire network you help build - providing you the benefits of network growth as your extended network grows.

You unlock rewards from more generations depending on your level or membership status on the platform.&#x20;

## Understanding Generations

Generations are the backbone of letting us expand benefits of growth from a just a referral to a network grown with your efforts.

#### 1st Genration

These are the users that have joined Onchained directly through your referral link. They form the foundation of your squad. You earn the highest reward percentage of up to 30% from their activity on the platform.&#x20;

#### 2nd Generation

Users who join Onchained through your direct referrals' link. You earn up to 10% rewards from their activity on the platform. You must be a Level 2 or above to start receive rewards based on your 2nd generation.

#### 3rd Generation

Users who join through your 2nd generation referrals' links. You earn up to 5% rewards from their activity on the platform. 3rd generation rewards are currently only accessible to Lifetime Plus members.


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