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reward cost budgeting
Budget rewards from earned value through redemption, reversal, and fulfilment. Separate the member promise from the operator cost, then reserve for the balance that may be used.
## The mechanism
Define the qualifying event, value change, owner, correction path, and member explanation. Keep eligibility, liability, fulfilment, consent, and reversal as separate rules. The operating control must be testable from the ledger.
## Worked example
Illustrative arithmetic: a member earns 3 points per dollar on 200 dollars of spend, creating 600 points. At 2 cents per point, the visible balance represents 12 dollars before redemption.
## Do it
State the rule in one sentence. Map the event that starts it, the event that changes value, the exception path, and the review action. Test ordinary, cancelled, duplicated, and disputed cases before release.
## Common mistakes
- Measuring activity instead of the target behaviour. Name the counterfactual. - Treating face value as operator cost. Price fulfilment and correction. - Hiding exclusions or expiry. Put the boundary beside the decision. - Automating an undefined rule. Resolve ownership before implementation.