diff --git a/Cargo.lock b/Cargo.lock
index 90c768c..0e53472 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -7138,6 +7138,25 @@ dependencies = [
  "sp-runtime",
 ]
 
+[[package]]
+name = "pallet-rewards"
+version = "0.1.0"
+dependencies = [
+ "frame-benchmarking",
+ "frame-support",
+ "frame-system",
+ "log",
+ "order-primitives",
+ "pallet-balances",
+ "parity-scale-codec",
+ "scale-info",
+ "serde",
+ "smallvec",
+ "sp-core",
+ "sp-io",
+ "sp-runtime",
+]
+
 [[package]]
 name = "pallet-root-testing"
 version = "4.0.0"
diff --git a/Cargo.toml b/Cargo.toml
index 0165bfb..9414045 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -165,3 +165,4 @@ pallet-market = { path = "./pallets/market", default-features = false }
 pallet-orders = { path = "./pallets/orders", default-features = false }
 pallet-processor = { path = "./pallets/processor", default-features = false }
 pallet-regions = { path = "./pallets/regions", default-features = false }
+pallet-rewards = { path = "./pallets/rewards", default-features = false }
diff --git a/pallets/rewards/Cargo.toml b/pallets/rewards/Cargo.toml
new file mode 100644
index 0000000..60c2905
--- /dev/null
+++ b/pallets/rewards/Cargo.toml
@@ -0,0 +1,51 @@
+[package]
+name = "pallet-rewards"
+authors = ["Anonymous"]
+description = "Pallet for processing coretime orders"
+version = "0.1.0"
+license = "GPLv3"
+edition = "2021"
+
+[package.metadata.docs.rs]
+targets = ["x86_64-unknown-linux-gnu"]
+
+[dependencies]
+log = { workspace = true }
+codec = { workspace = true, default-features = false, features = ["derive"] }
+scale-info = { workspace = true, default-features = false, features = ["derive"] }
+
+# Substrate
+frame-benchmarking = { workspace = true, default-features = false, optional = true }
+frame-support = { workspace = true, default-features = false }
+frame-system = { workspace = true, default-features = false }
+sp-io = { workspace = true, default-features = false }
+sp-core = { workspace = true, default-features = false }
+sp-runtime = { workspace = true, default-features = false }
+
+# Local
+order-primitives = { workspace = true, default-features = false }
+
+[dev-dependencies]
+serde = { workspace = true }
+smallvec = { workspace = true }
+pallet-balances = { workspace = true, default-features = false }
+
+[features]
+default = ["std"]
+runtime-benchmarks = [
+	"frame-benchmarking/runtime-benchmarks", 
+]
+std = [
+	"log/std",
+	"codec/std",
+	"scale-info/std",
+	"sp-io/std",
+	"sp-core/std",
+	"sp-runtime/std",
+	"frame-benchmarking/std",
+	"frame-support/std",
+	"frame-system/std",
+	"pallet-balances/std",
+    "order-primitives/std",
+]
+try-runtime = ["frame-support/try-runtime"]
diff --git a/pallets/rewards/src/lib.rs b/pallets/rewards/src/lib.rs
new file mode 100644
index 0000000..becbe17
--- /dev/null
+++ b/pallets/rewards/src/lib.rs
@@ -0,0 +1,159 @@
+// This file is part of RegionX.
+//
+// RegionX is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// RegionX is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with RegionX.  If not, see <https://www.gnu.org/licenses/>.
+
+#![cfg_attr(not(feature = "std"), no_std)]
+
+use frame_support::traits::fungibles;
+use frame_system::WeightInfo;
+use order_primitives::{OrderFactory, OrderId, OrderInspect};
+pub use pallet::*;
+use sp_runtime::traits::Zero;
+
+mod types;
+
+const LOG_TARGET: &str = "runtime::rewards";
+
+pub type BalanceOf<T> = <<T as crate::Config>::Assets as fungibles::Inspect<
+	<T as frame_system::Config>::AccountId,
+>>::Balance;
+
+pub type AssetIdOf<T> = <<T as crate::Config>::Assets as fungibles::Inspect<
+	<T as frame_system::Config>::AccountId,
+>>::AssetId;
+
+#[frame_support::pallet]
+pub mod pallet {
+	use super::*;
+	use frame_support::{
+		pallet_prelude::*,
+		traits::{fungibles::Inspect, tokens::Balance},
+	};
+	use frame_system::pallet_prelude::*;
+	use types::PrizePoolDetails;
+
+	/// The module configuration trait.
+	#[pallet::config]
+	pub trait Config: frame_system::Config {
+		/// The overarching event type.
+		type RuntimeEvent: From<Event<Self>> + IsType<<Self as frame_system::Config>::RuntimeEvent>;
+
+		/// Relay chain balance type
+		type Balance: Balance
+			+ Into<<Self::Assets as Inspect<Self::AccountId>>::Balance>
+			+ Into<u128>;
+
+		/// The type should provide access to assets which can be used as reward.
+		type Assets: Inspect<Self::AccountId>;
+
+		/// Type over which we can access order data.
+		type Orders: OrderInspect<Self::AccountId> + OrderFactory<Self::AccountId>;
+
+		/// Weight Info
+		type WeightInfo: WeightInfo;
+	}
+
+	#[pallet::pallet]
+	pub struct Pallet<T>(_);
+
+	/// Defines the rewards that will be distributed among order contributors if the order is
+	/// fulfilled on time.
+	#[pallet::storage]
+	#[pallet::getter(fn order_rewards)]
+	pub type PrizePools<T: Config> =
+		StorageMap<_, Blake2_128Concat, OrderId, PrizePoolDetails<AssetIdOf<T>, BalanceOf<T>>>;
+
+	#[pallet::event]
+	#[pallet::generate_deposit(pub(super) fn deposit_event)]
+	pub enum Event<T: Config> {}
+
+	#[pallet::error]
+	#[derive(PartialEq)]
+	pub enum Error<T> {
+		/// The caller submitted an extrinsic which wasn't allowed with their origin.
+		Unallowed,
+		/// The order expired and there is no point in configuring rewards.
+		OrderExpired,
+		/// Order not found.
+		UnknownOrder,
+		/// Rewards can only be configured if there is no existing configuration or if the rewards
+		/// are not yet set and are currently zero.
+		CantConfigure,
+		/// The reward pool of an order was not found.
+		PrizePoolNotFound,
+		/// The asset the user wanted to use for rewards does not exist.
+		AssetNotFound,
+	}
+
+	#[pallet::call]
+	impl<T: Config> Pallet<T> {
+		/// The order creator can configure the asset which will be used for rewarding contributors.
+		#[pallet::call_index(0)]
+		#[pallet::weight(10_000)]
+		pub fn configure_rewards(
+			origin: OriginFor<T>,
+			order_id: OrderId,
+			asset_id: AssetIdOf<T>,
+		) -> DispatchResult {
+			let caller = ensure_signed(origin)?;
+
+			let order = T::Orders::order(&order_id).ok_or(Error::<T>::UnknownOrder)?;
+
+			ensure!(!T::Orders::order_expired(&order), Error::<T>::OrderExpired);
+			ensure!(order.creator == caller, Error::<T>::Unallowed);
+
+			let maybe_pool = PrizePools::<T>::get(order_id);
+			// Rewards can be reconfigured if the amount is still zero.
+			if let Some(pool) = maybe_pool {
+				ensure!(pool.amount == Zero::zero(), Error::<T>::CantConfigure);
+			}
+
+			ensure!(T::Assets::asset_exists(asset_id.clone()) == true, Error::<T>::AssetNotFound);
+
+			PrizePools::<T>::insert(order_id, PrizePoolDetails { asset_id, amount: Zero::zero() });
+
+			// TODO: deposit event
+			Ok(())
+		}
+
+		/// Add rewards to a reward pool of an order.
+		///
+		/// The added rewards will be of the configured asset kind.
+		///
+		/// ## Parameters
+		///
+		/// - `origin`: Signed origin. Can be called by any account.
+		/// - `order_id`: The order to which the user wants to contribute rewards. There must exist
+		///   a reward pool for the specified order.
+		///  -`amount`: number of tokens the user wants to add to the reward pool.
+		#[pallet::call_index(1)]
+		#[pallet::weight(10_000)]
+		pub fn add_rewards(
+			origin: OriginFor<T>,
+			order_id: OrderId,
+			amount: BalanceOf<T>,
+		) -> DispatchResult {
+			let _caller = ensure_signed(origin)?;
+
+			let Some(pool) = PrizePools::<T>::get(order_id) else {
+				return Err(Error::<T>::PrizePoolNotFound.into())
+			};
+
+			// TODO: check if user has enough tokens
+			// TODO: contribute to the pool.
+
+			Ok(())
+		}
+	}
+}
diff --git a/pallets/rewards/src/types.rs b/pallets/rewards/src/types.rs
new file mode 100644
index 0000000..3cab3d3
--- /dev/null
+++ b/pallets/rewards/src/types.rs
@@ -0,0 +1,26 @@
+// This file is part of RegionX.
+//
+// RegionX is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// RegionX is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with RegionX.  If not, see <https://www.gnu.org/licenses/>.
+
+use codec::{Decode, Encode, MaxEncodedLen};
+use scale_info::TypeInfo;
+
+/// Contains reward details of an order.
+#[derive(Encode, Decode, Debug, Clone, PartialEq, Eq, TypeInfo, MaxEncodedLen)]
+pub struct PrizePoolDetails<AssetId, Balance> {
+	/// The asset which the contributors will receive,
+	pub asset_id: AssetId,
+	/// Amount of tokens that will be distributed to contributors.
+	pub amount: Balance,
+}