diff --git a/frame/nomination-pools/src/lib.rs b/frame/nomination-pools/src/lib.rs
index 09f1746b8e5ba..f48a9b73bb728 100644
--- a/frame/nomination-pools/src/lib.rs
+++ b/frame/nomination-pools/src/lib.rs
@@ -358,6 +358,16 @@ enum AccountType {
 	Reward,
 }
 
+/// Indicates whether the the member account or the bonded accound is going
+/// to receive the payout.
+enum PayoutRecipient<T: Config> {
+	/// Stores the `AccountId` of the member account.
+	MemberAccount(T::AccountId),
+	/// Stores the `AccountId` of the bonded account and the member account.
+	/// (member_account, bonded_account)
+	BondedAccount(T::AccountId, T::AccountId),
+}
+
 /// A member in a pool.
 #[derive(Encode, Decode, MaxEncodedLen, TypeInfo, RuntimeDebugNoBound, CloneNoBound)]
 #[cfg_attr(feature = "std", derive(frame_support::PartialEqNoBound, DefaultNoBound))]
@@ -857,9 +867,13 @@ impl<T: Config> BondedPool<T> {
 
 	/// Bond exactly `amount` from `who`'s funds into this pool.
 	///
-	/// If the bond type is `Create`, `StakingInterface::bond` is called, and `who`
-	/// is allowed to be killed. Otherwise, `StakingInterface::bond_extra` is called and `who`
-	/// cannot be killed.
+	/// If the bond type is `Create`, `StakingInterface::bond` is called, and
+	/// `who` is allowed to be killed. Otherwise, `StakingInterface::bond_extra`
+	/// is called and `who` cannot be killed.
+	///
+	/// The `bond_from_member` argument is a flag that indicates whether the
+	/// `amount` should be transfered from `who`, or the `bonded_account`
+	/// already has the `amount`, but just needs to bond it.
 	///
 	/// Returns `Ok(points_issues)`, `Err` otherwise.
 	fn try_bond_funds(
@@ -867,18 +881,22 @@ impl<T: Config> BondedPool<T> {
 		who: &T::AccountId,
 		amount: BalanceOf<T>,
 		ty: BondType,
+		bond_from_member: bool,
 	) -> Result<BalanceOf<T>, DispatchError> {
 		// Cache the value
 		let bonded_account = self.bonded_account();
-		T::Currency::transfer(
-			&who,
-			&bonded_account,
-			amount,
-			match ty {
-				BondType::Create => ExistenceRequirement::AllowDeath,
-				BondType::Later => ExistenceRequirement::KeepAlive,
-			},
-		)?;
+
+		if bond_from_member {
+			T::Currency::transfer(
+				&who,
+				&bonded_account,
+				amount,
+				match ty {
+					BondType::Create => ExistenceRequirement::AllowDeath,
+					BondType::Later => ExistenceRequirement::KeepAlive,
+				},
+			)?;
+		}
 		// We must calculate the points issued *before* we bond who's funds, else points:balance
 		// ratio will be wrong.
 		let points_issued = self.issue(amount);
@@ -899,6 +917,36 @@ impl<T: Config> BondedPool<T> {
 		Ok(points_issued)
 	}
 
+	/// Bond all of the pending_rewards from `member` into this pool.
+	///
+	/// Transfers the member's rewards directly to the bonded account of the
+	/// member. Makes a call to the `StakingInterface::bond_extra` to bond the
+	/// newly claimed rewards.
+	///
+	/// Emits the `PaidOut` event.
+	///
+	/// Returns `Ok((points_issues, bonded))`, `Err` otherwise.
+	fn try_bond_funds_from_rewards(
+		&mut self,
+		who: &T::AccountId,
+		member: &mut PoolMember<T>,
+		reward_pool: &mut RewardPool<T>,
+	) -> Result<(BalanceOf<T>, BalanceOf<T>), DispatchError> {
+		let bonded_account = self.bonded_account();
+
+		let pending_rewards = Pallet::<T>::calculate_and_payout_rewards(
+			member,
+			self,
+			reward_pool,
+			PayoutRecipient::<T>::BondedAccount(who.clone(), bonded_account.clone()),
+		)?;
+
+		let points_issued =
+			self.try_bond_funds(&bonded_account, pending_rewards, BondType::Later, false)?;
+
+		Ok((points_issued, pending_rewards))
+	}
+
 	// Set the state of `self`, and deposit an event if the state changed. State should never be set
 	// directly in in order to ensure a state change event is always correctly deposited.
 	fn set_state(&mut self, state: PoolState) {
@@ -1340,8 +1388,13 @@ pub mod pallet {
 		Created { depositor: T::AccountId, pool_id: PoolId },
 		/// A member has became bonded in a pool.
 		Bonded { member: T::AccountId, pool_id: PoolId, bonded: BalanceOf<T>, joined: bool },
-		/// A payout has been made to a member.
-		PaidOut { member: T::AccountId, pool_id: PoolId, payout: BalanceOf<T> },
+		/// A payout has been made to a recipient.
+		PaidOut {
+			recipient: T::AccountId,
+			member: T::AccountId,
+			pool_id: PoolId,
+			payout: BalanceOf<T>,
+		},
 		/// A member has unbonded from their pool.
 		///
 		/// - `balance` is the corresponding balance of the number of points that has been
@@ -1503,7 +1556,7 @@ pub mod pallet {
 			reward_pool.update_records(pool_id, bonded_pool.points)?;
 
 			bonded_pool.try_inc_members()?;
-			let points_issued = bonded_pool.try_bond_funds(&who, amount, BondType::Later)?;
+			let points_issued = bonded_pool.try_bond_funds(&who, amount, BondType::Later, true)?;
 
 			PoolMembers::insert(
 				who.clone(),
@@ -1532,13 +1585,13 @@ pub mod pallet {
 
 		/// Bond `extra` more funds from `origin` into the pool to which they already belong.
 		///
-		/// Additional funds can come from either the free balance of the account, of from the
+		/// Additional funds can come from either the free balance of the account, or from the
 		/// accumulated rewards, see [`BondExtra`].
 		///
 		/// Bonding extra funds implies an automatic payout of all pending rewards as well.
 		// NOTE: this transaction is implemented with the sole purpose of readability and
 		// correctness, not optimization. We read/write several storage items multiple times instead
-		// of just once, in the spirit reusing code.
+		// of just once, in the spirit of reusing code.
 		#[pallet::weight(
 			T::WeightInfo::bond_extra_transfer()
 			.max(T::WeightInfo::bond_extra_reward())
@@ -1551,18 +1604,17 @@ pub mod pallet {
 			// payout related stuff: we must claim the payouts, and updated recorded payout data
 			// before updating the bonded pool points, similar to that of `join` transaction.
 			reward_pool.update_records(bonded_pool.id, bonded_pool.points)?;
-			// TODO: optimize this to not touch the free balance of `who ` at all in benchmarks.
-			// Currently, bonding rewards is like a batch. In the same PR, also make this function
-			// take a boolean argument that make it either 100% pure (no storage update), or make it
-			// also emit event and do the transfer. #11671
-			let claimed =
+
+			// we have to claim the pending_rewards every time we change the bonded amount.
+			if matches!(extra, BondExtra::FreeBalance(_)) {
 				Self::do_reward_payout(&who, &mut member, &mut bonded_pool, &mut reward_pool)?;
+			}
 
 			let (points_issued, bonded) = match extra {
 				BondExtra::FreeBalance(amount) =>
-					(bonded_pool.try_bond_funds(&who, amount, BondType::Later)?, amount),
+					(bonded_pool.try_bond_funds(&who, amount, BondType::Later, true)?, amount),
 				BondExtra::Rewards =>
-					(bonded_pool.try_bond_funds(&who, claimed, BondType::Later)?, claimed),
+					bonded_pool.try_bond_funds_from_rewards(&who, &mut member, &mut reward_pool)?,
 			};
 
 			bonded_pool.ok_to_be_open(bonded)?;
@@ -1580,7 +1632,7 @@ pub mod pallet {
 		}
 
 		/// A bonded member can use this to claim their payout based on the rewards that the pool
-		/// has accumulated since their last claimed payout (OR since joining if this is there first
+		/// has accumulated since their last claimed payout (OR since joining if this is their first
 		/// time claiming rewards). The payout will be transferred to the member's account.
 		///
 		/// The member will earn rewards pro rata based on the members stake vs the sum of the
@@ -1892,7 +1944,7 @@ pub mod pallet {
 			);
 
 			bonded_pool.try_inc_members()?;
-			let points = bonded_pool.try_bond_funds(&who, amount, BondType::Create)?;
+			let points = bonded_pool.try_bond_funds(&who, amount, BondType::Create, true)?;
 
 			T::Currency::transfer(
 				&who,
@@ -2301,24 +2353,64 @@ impl<T: Config> Pallet<T> {
 			.div(current_points)
 	}
 
-	/// If the member has some rewards, transfer a payout from the reward pool to the member.
-	// Emits events and potentially modifies pool state if any arithmetic saturates, but does
-	// not persist any of the mutable inputs to storage.
-	fn do_reward_payout(
-		member_account: &T::AccountId,
+	/// Calculates the rewards for the given member, and makes a payout to the
+	/// defined `payout_recipient` account.
+	///
+	/// Returns the amount of pending_rewards that the member has accumulated,
+	/// that are now transfered to the `payout_recipient`.
+	fn calculate_and_payout_rewards(
 		member: &mut PoolMember<T>,
 		bonded_pool: &mut BondedPool<T>,
 		reward_pool: &mut RewardPool<T>,
+		payout_recipient: PayoutRecipient<T>,
 	) -> Result<BalanceOf<T>, DispatchError> {
-		debug_assert_eq!(member.pool_id, bonded_pool.id);
-
-		// a member who has no skin in the game anymore cannot claim any rewards.
-		ensure!(!member.active_points().is_zero(), Error::<T>::FullyUnbonding);
+		let (pending_rewards, current_reward_counter) =
+			Self::calculate_rewards(member, bonded_pool, reward_pool)?;
+		Self::payout_rewards(
+			member,
+			bonded_pool,
+			reward_pool,
+			pending_rewards,
+			current_reward_counter,
+			payout_recipient,
+		)?;
+		Ok(pending_rewards)
+	}
 
+	/// Only calculates the rewards for the given member without changing any
+	/// data.
+	///
+	/// Returns the pending rewards of the member and the
+	/// `current_reward_counter` of the reward pool
+	fn calculate_rewards(
+		member: &PoolMember<T>,
+		bonded_pool: &BondedPool<T>,
+		reward_pool: &RewardPool<T>,
+	) -> Result<(BalanceOf<T>, T::RewardCounter), DispatchError> {
 		let current_reward_counter =
 			reward_pool.current_reward_counter(bonded_pool.id, bonded_pool.points)?;
 		let pending_rewards = member.pending_rewards(current_reward_counter)?;
 
+		Ok((pending_rewards, current_reward_counter))
+	}
+
+	/// Does the actual payout of the accumulated rewards by the member.
+	///
+	/// Returns the amount of pending rewards that got paid out.
+	/// Emits the `PaidOut` event.
+	fn payout_rewards(
+		member: &mut PoolMember<T>,
+		bonded_pool: &mut BondedPool<T>,
+		reward_pool: &mut RewardPool<T>,
+		pending_rewards: BalanceOf<T>,
+		current_reward_counter: T::RewardCounter,
+		payout_recipient: PayoutRecipient<T>,
+	) -> Result<BalanceOf<T>, DispatchError> {
+		debug_assert_eq!(member.pool_id, bonded_pool.id);
+
+		// a member who has no skin in the game anymore cannot claim any rewards.
+		ensure!(!member.active_points().is_zero(), Error::<T>::FullyUnbonding);
+
 		if pending_rewards.is_zero() {
 			return Ok(pending_rewards)
 		}
@@ -2327,16 +2419,22 @@ impl<T: Config> Pallet<T> {
 		member.last_recorded_reward_counter = current_reward_counter;
 		reward_pool.register_claimed_reward(pending_rewards);
 
-		// Transfer payout to the member.
+		let (member_acc, recipient) = match payout_recipient {
+			PayoutRecipient::<T>::MemberAccount(member_acc) => (member_acc.clone(), member_acc),
+			PayoutRecipient::<T>::BondedAccount(member_acc, bonded_acc) => (member_acc, bonded_acc),
+		};
+
+		// Transfer payout to the recipient.
 		T::Currency::transfer(
 			&bonded_pool.reward_account(),
-			&member_account,
+			&recipient,
 			pending_rewards,
 			ExistenceRequirement::AllowDeath,
 		)?;
 
 		Self::deposit_event(Event::<T>::PaidOut {
-			member: member_account.clone(),
+			member: member_acc,
+			recipient: recipient.clone(),
 			pool_id: member.pool_id,
 			payout: pending_rewards,
 		});
@@ -2344,6 +2442,23 @@ impl<T: Config> Pallet<T> {
 		Ok(pending_rewards)
 	}
 
+	/// If the member has some rewards, transfer a payout from the reward pool to the member.
+	// Emits events and potentially modifies pool state if any arithmetic saturates, but does
+	// not persist any of the mutable inputs to storage.
+	fn do_reward_payout(
+		member_account: &T::AccountId,
+		member: &mut PoolMember<T>,
+		bonded_pool: &mut BondedPool<T>,
+		reward_pool: &mut RewardPool<T>,
+	) -> Result<BalanceOf<T>, DispatchError> {
+		Self::calculate_and_payout_rewards(
+			member,
+			bonded_pool,
+			reward_pool,
+			PayoutRecipient::<T>::MemberAccount(member_account.clone()),
+		)
+	}
+
 	/// Ensure the correctness of the state of this pallet.
 	///
 	/// This should be valid before or after each state transition of this pallet.
diff --git a/frame/nomination-pools/src/migration.rs b/frame/nomination-pools/src/migration.rs
index f2abfe29dfbf7..bde99039f6be6 100644
--- a/frame/nomination-pools/src/migration.rs
+++ b/frame/nomination-pools/src/migration.rs
@@ -279,6 +279,7 @@ pub mod v2 {
 							}
 
 							Pallet::<T>::deposit_event(Event::<T>::PaidOut {
+								recipient: who.clone(),
 								member: who.clone(),
 								pool_id: id,
 								payout: last_claim,
diff --git a/frame/nomination-pools/src/mock.rs b/frame/nomination-pools/src/mock.rs
index 5138c55afccac..94f69eb04cf5e 100644
--- a/frame/nomination-pools/src/mock.rs
+++ b/frame/nomination-pools/src/mock.rs
@@ -21,6 +21,13 @@ pub fn default_reward_account() -> AccountId {
 	Pools::create_reward_account(1)
 }
 
+pub fn default_pool_reward_counter() -> FixedU128 {
+	RewardPools::<T>::get(1)
+		.unwrap()
+		.current_reward_counter(1, BondedPools::<T>::get(1).unwrap().points)
+		.unwrap()
+}
+
 parameter_types! {
 	pub static MinJoinBondConfig: Balance = 2;
 	pub static CurrentEra: EraIndex = 0;
diff --git a/frame/nomination-pools/src/tests.rs b/frame/nomination-pools/src/tests.rs
index 5aa8e97266e0d..6510dca7b0d30 100644
--- a/frame/nomination-pools/src/tests.rs
+++ b/frame/nomination-pools/src/tests.rs
@@ -696,7 +696,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 10, pool_id: 1, payout: 10 },]
+					vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10 },]
 				);
 				// last recorded reward counter at the time of this member's payout is 1
 				assert_eq!(PoolMembers::<Runtime>::get(10).unwrap(), del(10, 1));
@@ -712,7 +712,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 40, pool_id: 1, payout: 40 }]
+					vec![Event::PaidOut { recipient: 40, member: 40, pool_id: 1, payout: 40 }]
 				);
 				assert_eq!(PoolMembers::<Runtime>::get(40).unwrap(), del(40, 1));
 				assert_eq!(RewardPools::<Runtime>::get(&1).unwrap(), rew(0, 0, 50));
@@ -725,7 +725,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 50, pool_id: 1, payout: 50 }]
+					vec![Event::PaidOut { recipient: 50, member: 50, pool_id: 1, payout: 50 }]
 				);
 				assert_eq!(PoolMembers::<Runtime>::get(50).unwrap(), del(50, 1));
 				assert_eq!(RewardPools::<Runtime>::get(&1).unwrap(), rew(0, 0, 100));
@@ -741,7 +741,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 10, pool_id: 1, payout: 5 }]
+					vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 5 }]
 				);
 				assert_eq!(PoolMembers::<Runtime>::get(10).unwrap(), del_float(10, 1.5));
 				assert_eq!(RewardPools::<Runtime>::get(&1).unwrap(), rew(0, 0, 105));
@@ -754,7 +754,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 40, pool_id: 1, payout: 20 }]
+					vec![Event::PaidOut { recipient: 40, member: 40, pool_id: 1, payout: 20 }]
 				);
 				assert_eq!(PoolMembers::<Runtime>::get(40).unwrap(), del_float(40, 1.5));
 				assert_eq!(RewardPools::<Runtime>::get(&1).unwrap(), rew(0, 0, 125));
@@ -771,7 +771,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 50, pool_id: 1, payout: 50 }]
+					vec![Event::PaidOut { recipient: 50, member: 50, pool_id: 1, payout: 50 }]
 				);
 				assert_eq!(PoolMembers::<Runtime>::get(50).unwrap(), del_float(50, 2.0));
 				assert_eq!(RewardPools::<Runtime>::get(&1).unwrap(), rew(0, 0, 175));
@@ -784,7 +784,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 10, pool_id: 1, payout: 5 }]
+					vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 5 }]
 				);
 				assert_eq!(PoolMembers::<Runtime>::get(10).unwrap(), del(10, 2));
 				assert_eq!(RewardPools::<Runtime>::get(&1).unwrap(), rew(0, 0, 180));
@@ -801,7 +801,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 10, pool_id: 1, payout: 40 }]
+					vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 40 }]
 				);
 
 				// We expect a payout of 40
@@ -820,7 +820,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 10, pool_id: 1, payout: 2 }]
+					vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 2 }]
 				);
 				assert_eq!(PoolMembers::<Runtime>::get(10).unwrap(), del_float(10, 6.2));
 				assert_eq!(RewardPools::<Runtime>::get(&1).unwrap(), rew(0, 0, 222));
@@ -833,7 +833,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 40, pool_id: 1, payout: 188 }]
+					vec![Event::PaidOut { recipient: 40, member: 40, pool_id: 1, payout: 188 }]
 				);
 				assert_eq!(PoolMembers::<Runtime>::get(40).unwrap(), del_float(40, 6.2));
 				assert_eq!(RewardPools::<Runtime>::get(&1).unwrap(), rew(0, 0, 410));
@@ -846,7 +846,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 50, pool_id: 1, payout: 210 }]
+					vec![Event::PaidOut { recipient: 50, member: 50, pool_id: 1, payout: 210 }]
 				);
 				assert_eq!(PoolMembers::<Runtime>::get(50).unwrap(), del_float(50, 6.2));
 				assert_eq!(RewardPools::<Runtime>::get(&1).unwrap(), rew(0, 0, 620));
@@ -907,7 +907,7 @@ mod claim_payout {
 				vec![
 					Event::Created { depositor: 10, pool_id: 1 },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 5 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 5 }
 				]
 			);
 			assert_eq!(payout, 5);
@@ -925,7 +925,7 @@ mod claim_payout {
 			// Then
 			assert_eq!(
 				pool_events_since_last_call(),
-				vec![Event::PaidOut { member: 10, pool_id: 1, payout: 10 }]
+				vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10 }]
 			);
 			assert_eq!(payout, 10);
 			assert_eq!(reward_pool, rew(0, 0, 15));
@@ -984,7 +984,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 10, pool_id: 1, payout: 10 }]
+					vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10 }]
 				);
 				assert_eq!(payout, 10);
 				assert_eq!(del_10, del(10, 1));
@@ -998,7 +998,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 40, pool_id: 1, payout: 40 }]
+					vec![Event::PaidOut { recipient: 40, member: 40, pool_id: 1, payout: 40 }]
 				);
 				assert_eq!(payout, 40);
 				assert_eq!(del_40, del(40, 1));
@@ -1012,7 +1012,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 50, pool_id: 1, payout: 50 }]
+					vec![Event::PaidOut { recipient: 50, member: 50, pool_id: 1, payout: 50 }]
 				);
 				assert_eq!(payout, 50);
 				assert_eq!(del_50, del(50, 1));
@@ -1029,7 +1029,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 10, pool_id: 1, payout: 5 }]
+					vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 5 }]
 				);
 				assert_eq!(payout, 5);
 				assert_eq!(del_10, del_float(10, 1.5));
@@ -1043,7 +1043,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 40, pool_id: 1, payout: 20 }]
+					vec![Event::PaidOut { recipient: 40, member: 40, pool_id: 1, payout: 20 }]
 				);
 				assert_eq!(payout, 20);
 				assert_eq!(del_40, del_float(40, 1.5));
@@ -1060,7 +1060,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 50, pool_id: 1, payout: 50 }]
+					vec![Event::PaidOut { recipient: 50, member: 50, pool_id: 1, payout: 50 }]
 				);
 				assert_eq!(payout, 50);
 				assert_eq!(del_50, del_float(50, 2.0));
@@ -1074,7 +1074,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 10, pool_id: 1, payout: 5 }]
+					vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 5 }]
 				);
 				assert_eq!(payout, 5);
 				assert_eq!(del_10, del_float(10, 2.0));
@@ -1091,7 +1091,7 @@ mod claim_payout {
 				// Then
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 10, pool_id: 1, payout: 40 }]
+					vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 40 }]
 				);
 				assert_eq!(payout, 40);
 				assert_eq!(del_10, del_float(10, 6.0));
@@ -1154,8 +1154,8 @@ mod claim_payout {
 					Event::Created { depositor: 10, pool_id: 1 },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 10, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 20 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 10 },
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 20 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 10 },
 				]
 			);
 
@@ -1168,8 +1168,8 @@ mod claim_payout {
 			assert_eq!(
 				pool_events_since_last_call(),
 				vec![
-					Event::PaidOut { member: 10, pool_id: 1, payout: 10 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 10 },
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 10 },
 				]
 			);
 		});
@@ -1197,8 +1197,8 @@ mod claim_payout {
 					Event::Created { depositor: 10, pool_id: 1 },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 10, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 3 + 3 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 3 },
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 3 + 3 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 3 },
 				]
 			);
 
@@ -1211,8 +1211,8 @@ mod claim_payout {
 			assert_eq!(
 				pool_events_since_last_call(),
 				vec![
-					Event::PaidOut { member: 10, pool_id: 1, payout: 4 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 4 },
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 4 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 4 },
 				]
 			);
 
@@ -1225,8 +1225,8 @@ mod claim_payout {
 			assert_eq!(
 				pool_events_since_last_call(),
 				vec![
-					Event::PaidOut { member: 10, pool_id: 1, payout: 3 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 3 },
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 3 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 3 },
 				]
 			);
 		});
@@ -1261,9 +1261,19 @@ mod claim_payout {
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 30, pool_id: 1, bonded: 10, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 30 + 100 / 2 + 60 / 3 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 100 / 2 + 60 / 3 },
-					Event::PaidOut { member: 30, pool_id: 1, payout: 60 / 3 },
+					Event::PaidOut {
+						recipient: 10,
+						member: 10,
+						pool_id: 1,
+						payout: 30 + 100 / 2 + 60 / 3
+					},
+					Event::PaidOut {
+						recipient: 20,
+						member: 20,
+						pool_id: 1,
+						payout: 100 / 2 + 60 / 3
+					},
+					Event::PaidOut { recipient: 30, member: 30, pool_id: 1, payout: 60 / 3 },
 				]
 			);
 
@@ -1277,9 +1287,9 @@ mod claim_payout {
 			assert_eq!(
 				pool_events_since_last_call(),
 				vec![
-					Event::PaidOut { member: 10, pool_id: 1, payout: 10 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 10 },
-					Event::PaidOut { member: 30, pool_id: 1, payout: 10 },
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 10 },
+					Event::PaidOut { recipient: 30, member: 30, pool_id: 1, payout: 10 },
 				]
 			);
 		});
@@ -1309,9 +1319,9 @@ mod claim_payout {
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 20, joined: true },
 					Event::Bonded { member: 30, pool_id: 1, bonded: 10, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 10 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 20 },
-					Event::PaidOut { member: 30, pool_id: 1, payout: 10 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 20 },
+					Event::PaidOut { recipient: 30, member: 30, pool_id: 1, payout: 10 }
 				]
 			);
 
@@ -1329,9 +1339,9 @@ mod claim_payout {
 				pool_events_since_last_call(),
 				vec![
 					Event::Bonded { member: 30, pool_id: 1, bonded: 10, joined: false },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 20 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 40 },
-					Event::PaidOut { member: 30, pool_id: 1, payout: 40 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 20 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 40 },
+					Event::PaidOut { recipient: 30, member: 30, pool_id: 1, payout: 40 }
 				]
 			);
 		});
@@ -1357,8 +1367,8 @@ mod claim_payout {
 					Event::Created { depositor: 10, pool_id: 1 },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 20, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 10 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 20 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 20 }
 				]
 			);
 
@@ -1375,8 +1385,8 @@ mod claim_payout {
 				pool_events_since_last_call(),
 				vec![
 					Event::Unbonded { member: 20, pool_id: 1, balance: 10, points: 10, era: 3 },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 50 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 50 },
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 50 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 50 },
 				]
 			);
 		});
@@ -1406,8 +1416,8 @@ mod claim_payout {
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 20, joined: true },
 					Event::Bonded { member: 30, pool_id: 1, bonded: 10, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 10 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 20 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 20 }
 				]
 			);
 
@@ -1421,8 +1431,8 @@ mod claim_payout {
 			assert_eq!(
 				pool_events_since_last_call(),
 				vec![
-					Event::PaidOut { member: 10, pool_id: 1, payout: 20 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 40 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 20 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 40 }
 				]
 			);
 
@@ -1436,8 +1446,8 @@ mod claim_payout {
 			assert_eq!(
 				pool_events_since_last_call(),
 				vec![
-					Event::PaidOut { member: 10, pool_id: 1, payout: 20 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 40 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 20 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 40 }
 				]
 			);
 
@@ -1446,7 +1456,12 @@ mod claim_payout {
 
 			assert_eq!(
 				pool_events_since_last_call(),
-				vec![Event::PaidOut { member: 30, pool_id: 1, payout: 10 + 20 + 20 }]
+				vec![Event::PaidOut {
+					recipient: 30,
+					member: 30,
+					pool_id: 1,
+					payout: 10 + 20 + 20
+				}]
 			);
 		});
 	}
@@ -1471,7 +1486,7 @@ mod claim_payout {
 					Event::Created { depositor: 10, pool_id: 1 },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 20, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 10 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10 }
 				]
 			);
 
@@ -1481,7 +1496,7 @@ mod claim_payout {
 			// and 20 bonds more -- they should not have more share of this reward.
 			assert_ok!(Pools::bond_extra(Origin::signed(20), BondExtra::FreeBalance(10)));
 
-			// everyone claim.
+			// everyone claims.
 			assert_ok!(Pools::claim_payout(Origin::signed(10)));
 			assert_ok!(Pools::claim_payout(Origin::signed(20)));
 
@@ -1489,9 +1504,9 @@ mod claim_payout {
 				pool_events_since_last_call(),
 				vec![
 					// 20 + 40, which means the extra amount they bonded did not impact us.
-					Event::PaidOut { member: 20, pool_id: 1, payout: 60 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 60 },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 10, joined: false },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 20 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 20 }
 				]
 			);
 
@@ -1505,8 +1520,8 @@ mod claim_payout {
 			assert_eq!(
 				pool_events_since_last_call(),
 				vec![
-					Event::PaidOut { member: 10, pool_id: 1, payout: 15 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 45 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 15 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 45 }
 				]
 			);
 		});
@@ -1573,7 +1588,7 @@ mod claim_payout {
 					Event::Bonded { member: 20, pool_id: 2, bonded: 10, joined: true },
 					Event::Created { depositor: 30, pool_id: 3 },
 					Event::Bonded { member: 30, pool_id: 3, bonded: 10, joined: true },
-					Event::PaidOut { member: 30, pool_id: 3, payout: 10 }
+					Event::PaidOut { recipient: 30, member: 30, pool_id: 3, payout: 10 }
 				]
 			);
 		})
@@ -1711,9 +1726,9 @@ mod claim_payout {
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 20, joined: true },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: false },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 15 },
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 15 },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: false },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 15 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 15 },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 10, joined: false }
 				]
 			);
@@ -1809,12 +1824,12 @@ mod claim_payout {
 						Event::Bonded { member: 20, pool_id: 1, bonded: 20, joined: true },
 						Event::Bonded { member: 30, pool_id: 1, bonded: 20, joined: true },
 						Event::Unbonded { member: 20, pool_id: 1, balance: 10, points: 10, era: 3 },
-						Event::PaidOut { member: 30, pool_id: 1, payout: 15 },
+						Event::PaidOut { recipient: 30, member: 30, pool_id: 1, payout: 15 },
 						Event::Unbonded { member: 30, pool_id: 1, balance: 10, points: 10, era: 3 },
 						Event::Unbonded { member: 30, pool_id: 1, balance: 5, points: 5, era: 3 },
-						Event::PaidOut { member: 20, pool_id: 1, payout: 7 },
+						Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 7 },
 						Event::Unbonded { member: 20, pool_id: 1, balance: 5, points: 5, era: 3 },
-						Event::PaidOut { member: 10, pool_id: 1, payout: 7 }
+						Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 7 }
 					]
 				);
 			})
@@ -1845,8 +1860,8 @@ mod claim_payout {
 					Event::Created { depositor: 10, pool_id: 1 },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 20, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 13 },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 26 }
+					Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 13 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 26 }
 				]
 			);
 
@@ -1930,10 +1945,10 @@ mod claim_payout {
 							bonded: 5000000000000000,
 							joined: true
 						},
-						Event::PaidOut { member: 10, pool_id: 1, payout: 100000000 },
-						Event::PaidOut { member: 20, pool_id: 1, payout: 150000000 },
-						Event::PaidOut { member: 21, pool_id: 1, payout: 250000000 },
-						Event::PaidOut { member: 22, pool_id: 1, payout: 500000000 }
+						Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 100000000 },
+						Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 150000000 },
+						Event::PaidOut { recipient: 21, member: 21, pool_id: 1, payout: 250000000 },
+						Event::PaidOut { recipient: 22, member: 22, pool_id: 1, payout: 500000000 }
 					]
 				);
 			})
@@ -2268,7 +2283,7 @@ mod unbond {
 						Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 						Event::Bonded { member: 40, pool_id: 1, bonded: 40, joined: true },
 						Event::Bonded { member: 550, pool_id: 1, bonded: 550, joined: true },
-						Event::PaidOut { member: 40, pool_id: 1, payout: 40 },
+						Event::PaidOut { recipient: 40, member: 40, pool_id: 1, payout: 40 },
 						Event::Unbonded { member: 40, pool_id: 1, points: 6, balance: 6, era: 3 }
 					]
 				);
@@ -2310,7 +2325,7 @@ mod unbond {
 				assert_eq!(
 					pool_events_since_last_call(),
 					vec![
-						Event::PaidOut { member: 550, pool_id: 1, payout: 550 },
+						Event::PaidOut { recipient: 550, member: 550, pool_id: 1, payout: 550 },
 						Event::Unbonded {
 							member: 550,
 							pool_id: 1,
@@ -2354,7 +2369,7 @@ mod unbond {
 						Event::MemberRemoved { pool_id: 1, member: 40 },
 						Event::Withdrawn { member: 550, pool_id: 1, points: 92, balance: 92 },
 						Event::MemberRemoved { pool_id: 1, member: 550 },
-						Event::PaidOut { member: 10, pool_id: 1, payout: 10 },
+						Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10 },
 						Event::Unbonded { member: 10, pool_id: 1, points: 2, balance: 2, era: 6 }
 					]
 				);
@@ -2890,7 +2905,7 @@ mod unbond {
 					Event::Created { depositor: 10, pool_id: 1 },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 20, joined: true },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 10 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 10 },
 					Event::Unbonded { member: 20, pool_id: 1, balance: 2, points: 2, era: 3 }
 				]
 			);
@@ -2906,7 +2921,7 @@ mod unbond {
 				pool_events_since_last_call(),
 				vec![
 					// 2/3 of ed, which is 20's share.
-					Event::PaidOut { member: 20, pool_id: 1, payout: 6 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 6 },
 					Event::Unbonded { member: 20, pool_id: 1, points: 3, balance: 3, era: 4 }
 				]
 			);
@@ -2921,7 +2936,7 @@ mod unbond {
 			assert_eq!(
 				pool_events_since_last_call(),
 				vec![
-					Event::PaidOut { member: 20, pool_id: 1, payout: 3 },
+					Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 3 },
 					Event::Unbonded { member: 20, pool_id: 1, points: 5, balance: 5, era: 5 }
 				]
 			);
@@ -4093,6 +4108,7 @@ mod set_configs {
 mod bond_extra {
 	use super::*;
 	use crate::Event;
+	use sp_runtime::FixedU128;
 
 	#[test]
 	fn bond_extra_from_free_balance_creator() {
@@ -4164,7 +4180,12 @@ mod bond_extra {
 				vec![
 					Event::Created { depositor: 10, pool_id: 1 },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: claimable_reward },
+					Event::PaidOut {
+						recipient: default_bonded_account(),
+						member: 10,
+						pool_id: 1,
+						payout: claimable_reward
+					},
 					Event::Bonded {
 						member: 10,
 						pool_id: 1,
@@ -4184,7 +4205,7 @@ mod bond_extra {
 			Balances::make_free_balance_be(&default_reward_account(), 8);
 			// ... if which only 3 is claimable to make sure the reward account does not die.
 			let claimable_reward = 8 - ExistentialDeposit::get();
-			// NOTE: easier to read of we use 3, so let's use the number instead of variable.
+			// NOTE: easier to read if we use 3, so let's use the number instead of variable.
 			assert_eq!(claimable_reward, 3, "test is correct if rewards are divisible by 3");
 
 			// given
@@ -4219,14 +4240,127 @@ mod bond_extra {
 					Event::Created { depositor: 10, pool_id: 1 },
 					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
 					Event::Bonded { member: 20, pool_id: 1, bonded: 20, joined: true },
-					Event::PaidOut { member: 10, pool_id: 1, payout: 1 },
+					Event::PaidOut {
+						recipient: default_bonded_account(),
+						member: 10,
+						pool_id: 1,
+						payout: 1
+					},
 					Event::Bonded { member: 10, pool_id: 1, bonded: 1, joined: false },
-					Event::PaidOut { member: 20, pool_id: 1, payout: 2 },
+					Event::PaidOut {
+						recipient: default_bonded_account(),
+						member: 20,
+						pool_id: 1,
+						payout: 2
+					},
 					Event::Bonded { member: 20, pool_id: 1, bonded: 2, joined: false }
 				]
 			);
 		})
 	}
+
+	#[test]
+	fn calculate_rewards_works() {
+		ExtBuilder::default().build_and_execute(|| {
+			// give some balance.
+			Balances::make_free_balance_be(&10, 100);
+
+			// given
+			assert_eq!(PoolMembers::<Runtime>::get(10).unwrap().points, 10);
+			assert_eq!(BondedPools::<Runtime>::get(1).unwrap().points, 10);
+			assert_eq!(Balances::free_balance(10), 100);
+
+			let (member, bonded_pool, reward_pool) = Pools::get_member_with_pools(&10).unwrap();
+
+			// then
+			assert_eq!(
+				Pools::calculate_rewards(&member, &bonded_pool, &reward_pool).unwrap(),
+				(0, FixedU128::from(0))
+			);
+
+			// given some free balance.
+			Balances::make_free_balance_be(&default_reward_account(), 7);
+
+			let claimable_reward = 7 - ExistentialDeposit::get();
+			let current_reward_counter = default_pool_reward_counter();
+
+			// this should hold true.
+			assert_eq!(
+				Pools::calculate_rewards(&member, &bonded_pool, &reward_pool).unwrap(),
+				(claimable_reward, current_reward_counter)
+			);
+		})
+	}
+
+	#[test]
+	fn try_bond_funds_from_rewards_works() {
+		ExtBuilder::default().build_and_execute(|| {
+			// given some free balance.
+			Balances::make_free_balance_be(&default_reward_account(), 7);
+
+			// given
+			assert_eq!(PoolMembers::<Runtime>::get(10).unwrap().points, 10);
+			assert_eq!(BondedPools::<Runtime>::get(1).unwrap().points, 10);
+			assert_eq!(Balances::free_balance(10), 35);
+
+			let (mut member, mut bonded_pool, mut reward_pool) =
+				Pools::get_member_with_pools(&10).unwrap();
+
+			// when
+			assert_ok!(bonded_pool.try_bond_funds_from_rewards(&10, &mut member, &mut reward_pool));
+
+			// then
+			assert_eq!(Balances::free_balance(10), 35);
+			// The points are still not updated. They are updated in the later
+			// part of the `bond_extra` function, which is not called here.
+			assert_eq!(PoolMembers::<Runtime>::get(10).unwrap().points, 10);
+			assert_eq!(BondedPools::<Runtime>::get(1).unwrap().points, 10);
+		})
+	}
+
+	#[test]
+	fn payout_rewards_to_bonded_account_works() {
+		ExtBuilder::default().build_and_execute(|| {
+			// given some free balance.
+			Balances::make_free_balance_be(&default_reward_account(), 7);
+
+			// given
+			assert_eq!(PoolMembers::<Runtime>::get(10).unwrap().points, 10);
+			assert_eq!(BondedPools::<Runtime>::get(1).unwrap().points, 10);
+			assert_eq!(Balances::free_balance(10), 35);
+
+			let (mut member, mut bonded_pool, mut reward_pool) =
+				Pools::get_member_with_pools(&10).unwrap();
+
+			let claimable_reward = 7 - ExistentialDeposit::get();
+			let current_reward_counter = default_pool_reward_counter();
+
+			// when
+			assert_ok!(Pools::payout_rewards(
+				&mut member,
+				&mut bonded_pool,
+				&mut reward_pool,
+				claimable_reward,
+				current_reward_counter,
+				PayoutRecipient::BondedAccount(10, default_bonded_account())
+			));
+
+			// then
+			assert_eq!(
+				pool_events_since_last_call(),
+				vec![
+					Event::Created { depositor: 10, pool_id: 1 },
+					Event::Bonded { member: 10, pool_id: 1, bonded: 10, joined: true },
+					Event::PaidOut {
+						recipient: default_bonded_account(),
+						member: 10,
+						pool_id: 1,
+						payout: 2
+					}
+				]
+			);
+		})
+	}
 }
 
 mod update_roles {
@@ -4401,8 +4535,6 @@ mod update_roles {
 }
 
 mod reward_counter_precision {
-	use sp_runtime::FixedU128;
-
 	use super::*;
 
 	const DOT: Balance = 10u128.pow(10u32);
@@ -4418,13 +4550,6 @@ mod reward_counter_precision {
 		start
 	}
 
-	fn default_pool_reward_counter() -> FixedU128 {
-		RewardPools::<T>::get(1)
-			.unwrap()
-			.current_reward_counter(1, BondedPools::<T>::get(1).unwrap().points)
-			.unwrap()
-	}
-
 	fn pending_rewards(of: AccountId) -> Option<BalanceOf<T>> {
 		let member = PoolMembers::<T>::get(of).unwrap();
 		assert_eq!(member.pool_id, 1);
@@ -4469,7 +4594,7 @@ mod reward_counter_precision {
 			assert_ok!(Pools::claim_payout(Origin::signed(10)));
 			assert_eq!(
 				pool_events_since_last_call(),
-				vec![Event::PaidOut { member: 10, pool_id: 1, payout: 1173 }]
+				vec![Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 1173 }]
 			);
 		})
 	}
@@ -4519,7 +4644,12 @@ mod reward_counter_precision {
 
 			assert_eq!(
 				pool_events_since_last_call(),
-				vec![Event::PaidOut { member: 10, pool_id: 1, payout: 15937424600999999996 }]
+				vec![Event::PaidOut {
+					recipient: 10,
+					member: 10,
+					pool_id: 1,
+					payout: 15937424600999999996
+				}]
 			);
 
 			// now let a small member join with 10 DOTs.
@@ -4535,7 +4665,7 @@ mod reward_counter_precision {
 				vec![
 					Event::Bonded { member: 30, pool_id: 1, bonded: 100000000000, joined: true },
 					// quite small, but working fine.
-					Event::PaidOut { member: 30, pool_id: 1, payout: 38 }
+					Event::PaidOut { recipient: 30, member: 30, pool_id: 1, payout: 38 }
 				]
 			);
 		})
@@ -4612,7 +4742,7 @@ mod reward_counter_precision {
 							bonded: 100000000000,
 							joined: true
 						},
-						Event::PaidOut { member: 10, pool_id: 1, payout: 9999997 }
+						Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 9999997 }
 					]
 				);
 
@@ -4625,7 +4755,12 @@ mod reward_counter_precision {
 				assert_ok!(Pools::claim_payout(Origin::signed(10)));
 				assert_eq!(
 					pool_events_since_last_call(),
-					vec![Event::PaidOut { member: 10, pool_id: 1, payout: 10000000 }]
+					vec![Event::PaidOut {
+						recipient: 10,
+						member: 10,
+						pool_id: 1,
+						payout: 10000000
+					}]
 				);
 
 				// earn some more rewards, this time 20 can also claim.
@@ -4638,8 +4773,8 @@ mod reward_counter_precision {
 				assert_eq!(
 					pool_events_since_last_call(),
 					vec![
-						Event::PaidOut { member: 10, pool_id: 1, payout: 10000000 },
-						Event::PaidOut { member: 20, pool_id: 1, payout: 1 }
+						Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 10000000 },
+						Event::PaidOut { recipient: 20, member: 20, pool_id: 1, payout: 1 }
 					]
 				);
 			});
@@ -4688,7 +4823,7 @@ mod reward_counter_precision {
 							bonded: 100000000000,
 							joined: true
 						},
-						Event::PaidOut { member: 10, pool_id: 1, payout: 9999997 }
+						Event::PaidOut { recipient: 10, member: 10, pool_id: 1, payout: 9999997 }
 					]
 				);