diff --git a/contracts/contracts/TACoRewardsDispenser.sol b/contracts/contracts/TACoRewardsDispenser.sol
new file mode 100644
index 00000000..9f939295
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+++ b/contracts/contracts/TACoRewardsDispenser.sol
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+// SPDX-License-Identifier: AGPL-3.0-or-later
+
+pragma solidity ^0.8.0;
+
+contract TACoRewardsDispenser {
+    uint256 public constant REWARDS_CALCULATION_BASE = 10000;
+    uint256 public constant ONE_YEAR = 365 * 1 days;
+    
+    IERC20 public token;
+    IProxy public claimableRewards; // TODO: what interface to use for claimabeRewards contract?
+    IApplication public tacoApplication;
+    // Rewards APY expressed wrt REWARDS_CALCULATION_BASE (e.g. 5% = 500)
+    uint256 public rewardsAPY;
+
+    constructor(IERC20 _token, IProxy _claimableRewards, IApplication _tacoApplication, uint256 _rewardsAPY) {
+        // TODO: we need some checks here using "require"
+        token = _token;
+        claimableRewards = _claimableRewards;
+        tacoApplication = _tacoApplication;
+        rewardsAPY  = _rewardsAPY;
+    }
+
+    function dispenseRewardsForCycle() external {
+        // This function can only be called once per rewards cycle, so it can be permissionless.
+        uint256 periodFinish = tacoApplication.periodFinish();
+        require(block.timestamp >= periodFinish);
+
+        // 1. Calculate rewards for this cycle
+        uint256 rewardCycleDuration = tacoApplication.rewardDuration();
+        uint256 authorizedOverall = tacoApplication.authorizedOverall();
+
+        uint256 rewardsForCycle = authorizedOverall * rewardsAPY * rewardCycleDuration / ONE_YEAR / REWARDS_CALCULATION_BASE;
+
+        // 2. Get rewards from ClaimableRewards (or FutureRewards?)
+        token.safeTransferFrom(claimableRewards, address(this), rewardsForCycle);
+
+        // 3. Approve (invariant: before and after this TX this approval is always 0)
+        token.approve(tacoApplication, rewardsForCycle);
+
+        // 4. Push rewards for cycle
+        tacoApplication.pushReward(rewardsForCycle);
+    }
+}