> For the complete documentation index, see [llms.txt](https://v3.docs.pooltogether.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://v3.docs.pooltogether.com/v3.0.1/protocol/prize-strategy.md).

# Prize Strategies

A Prize Strategy handles prize distribution for a [Prize Pool](/v3.0.1/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 first Prize Strategy that PoolTogether is offering is the [Single Random Winner](/v3.0.1/protocol/prize-strategy/single-random-winner.md) strategy.

Prize Strategies must implement the [Token Listener](/v3.0.1/protocol/prize-pool/token-listener.md) interface so that they can be aware of the full token lifecycle.

## Privileged Actions

A [Prize Pool's](/v3.0.1/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](/v3.0.1/protocol/prize-pool.md#awarding-yield) that has accrued in the Prize Pool
* [award any ERC20 balance](/v3.0.1/protocol/prize-pool.md#awarding-erc-20-s) held by the Prize Pool
* [award any ERC721](/v3.0.1/protocol/prize-pool.md#awarding-erc-721-s-nfts) owned by the Prize Pool

## Required Behaviour

A Prize Strategy must implement the [Token Listener](/v3.0.1/protocol/prize-pool/token-listener.md) interface so that it can listen to pool token mint, transfer and burn actions.