# Prize Strategies

A Prize Strategy handles prize distribution for a [Prize Pool](/protocol/prize-pool.md). When a Prize Pool is constructed it is configured with a Prize Strategy. The Prize Strategy has the privileged ability to award tokens from the Prize Pool.

The most popular Prize Strategy offering is the [Multiple Winner](https://github.com/pooltogether/documentation/tree/6c30eec9a3787b298b041b5d864e955c716185ba/protocol/prize-strategy/multiple-winners/README.md) strategy. Earlier versions (< v3.1.0) of the protocol used the Single Random Winner strategy, which is now a trivial subset of Multiple Winners (with `numberofWinners = 1`).

Prize Strategies must implement the [Token Listener](https://github.com/pooltogether/documentation/tree/6c30eec9a3787b298b041b5d864e955c716185ba/protocol/tokens/token-listener.md) interface so that they can be aware of the full token lifecycle.

## Privileged Actions

A [Prize Pool's](/protocol/prize-pool.md) Prize Strategy is able to award tokens held by the Prize Pool contract. The Prize Strategy is able to:

* [award yield](/protocol/prize-pool.md#awarding-yield) that has accrued in the Prize Pool
* [award any ERC20 balance](/protocol/prize-pool.md#awarding-erc-20-s) held by the Prize Pool
* [award any ERC721](/protocol/prize-pool.md#awarding-erc-721-s-nfts) owned by the Prize Pool

## Required Behaviour

A Prize Strategy must implement the [Token Listener](https://github.com/pooltogether/documentation/tree/6c30eec9a3787b298b041b5d864e955c716185ba/protocol/tokens/token-listener.md) interface so that it can listen to pool token mint, transfer and burn actions by the Prize Pool.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://v3.docs.pooltogether.com/protocol/prize-strategy.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.