> 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/v3.2.0/protocol/prize-strategy.md).

# Prize Strategies

A Prize Strategy handles prize distribution for a [Prize Pool](/v3.2.0/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](/v3.2.0/protocol/prize-strategy/multiple-winners.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](/v3.2.0/protocol/tokens/token-listener.md) interface so that they can be aware of the full token lifecycle.

## Privileged Actions

A [Prize Pool's](/v3.2.0/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](/v3.2.0/protocol/prize-pool.md#awarding-yield) that has accrued in the Prize Pool
* [award any ERC20 balance](/v3.2.0/protocol/prize-pool.md#awarding-erc-20-s) held by the Prize Pool
* [award any ERC721](/v3.2.0/protocol/prize-pool.md#awarding-erc-721-s-nfts) owned by the Prize Pool

## Required Behaviour

A Prize Strategy must implement the [Token Listener](/v3.2.0/protocol/tokens/token-listener.md) interface so that it can listen to pool token mint, transfer and burn actions by the Prize Pool.