Description: In above image Ethereum Tree has 3 existing members (1, 2 and 3) with holdings 1ETH, 2ETH and 1 ETH respectively. When new investor joins the system directly and invest 10 ETH to the system, 10% of his investment (1 ETH) will be deducted as a network fee and is available for distribution to current members of the system based on percentage of total holdings each individual member has in his/her wallet. So Distribution amount will divided into 3 existing members as below: Member 1 will get 1ETH * %of total holding in his/her wallet = 1ETH * 25% = 0.25 ETH Member 2 will get 1ETH * %of total holding in his/her wallet = 1ETH * 50% = 0.50 ETH Member 3 will get 1ETH * %of total holding in his/her wallet = 1ETH * 25% = 0.25 ETH So, Member 2 in our case will get more profit as he/she is holding greater portion of the System holdings.