diff --git a/apps/web/app/api/auth/callback/route.ts b/apps/web/app/api/auth/callback/route.ts
index e81425d..f6c8591 100644
--- a/apps/web/app/api/auth/callback/route.ts
+++ b/apps/web/app/api/auth/callback/route.ts
@@ -4,7 +4,7 @@ import { redirect } from 'next/navigation';
 import { createClient } from '@/lib/supabase/server';
 import { Resend } from 'resend';
 
-const CREDITS_PER_REFERRAL = 10;
+const CREDITS_PER_REFERRAL = 250;
 
 async function sendWelcomeEmail(
     full_name: string,
diff --git a/apps/web/app/api/track-referral/route.ts b/apps/web/app/api/track-referral/route.ts
index d619c60..f631e3c 100644
--- a/apps/web/app/api/track-referral/route.ts
+++ b/apps/web/app/api/track-referral/route.ts
@@ -81,7 +81,7 @@ export async function POST(request: Request) {
       ...(referredUserId && {
         referred_user_id: referredUserId,
         completed_at: new Date().toISOString(),
-        credits_awarded: 10
+        credits_awarded: 250
       }),
     };
 
diff --git a/apps/web/app/layout.tsx b/apps/web/app/layout.tsx
index bf84046..a84ffed 100644
--- a/apps/web/app/layout.tsx
+++ b/apps/web/app/layout.tsx
@@ -44,7 +44,6 @@ export default function RootLayout({
         </ThemeProvider>
         <SpeedInsights />
         <Analytics />
-
       </body>
     </html>
   )
diff --git a/apps/web/app/signup/page.tsx b/apps/web/app/signup/page.tsx
index d611e6f..6fa02f1 100644
--- a/apps/web/app/signup/page.tsx
+++ b/apps/web/app/signup/page.tsx
@@ -267,7 +267,7 @@ function SignupForm() {
               {showReferralBanner && referralCode && (
                 <div className="px-6 py-3 bg-purple-50 dark:bg-purple-900/20 border border-purple-200 dark:border-purple-700 rounded-lg">
                   <p className="text-sm text-center text-purple-700 dark:text-purple-300">
-                    🎉 You've been invited by a friend! <br /> Referral code: <span className="font-mono font-bold">{referralCode}</span>  <br /> You will earn 10 credits.
+                    🎉 You've been invited by a friend! <br /> Referral code: <span className="font-mono font-bold">{referralCode}</span>  <br /> You will earn 500 credits.
                   </p>
                 </div>
               )}
diff --git a/packages/supabase/migrations/20251025135210_update_profiles_default_credits.sql b/packages/supabase/migrations/20251025135210_update_profiles_default_credits.sql
new file mode 100644
index 0000000..43bb551
--- /dev/null
+++ b/packages/supabase/migrations/20251025135210_update_profiles_default_credits.sql
@@ -0,0 +1,2 @@
+ALTER TABLE public.profiles
+ALTER COLUMN credits SET DEFAULT 500;
diff --git a/packages/supabase/migrations/20251025140944_update_referrals_default_credits.sql b/packages/supabase/migrations/20251025140944_update_referrals_default_credits.sql
new file mode 100644
index 0000000..53cf58e
--- /dev/null
+++ b/packages/supabase/migrations/20251025140944_update_referrals_default_credits.sql
@@ -0,0 +1,53 @@
+CREATE OR REPLACE FUNCTION public.award_referral_credits()
+RETURNS trigger
+LANGUAGE plpgsql
+SECURITY DEFINER
+AS $$
+DECLARE
+    referrer_profile_id UUID;
+    current_credits INTEGER;
+    current_referral_credits INTEGER;
+    current_total_referrals INTEGER;
+    credits_to_award INTEGER := 250;
+BEGIN
+    -- Only process when status changes to 'completed'
+    IF NEW.status = 'completed' AND (OLD.status IS NULL OR OLD.status != 'completed') THEN
+        
+        -- Get the referrer's profile ID
+        referrer_profile_id := NEW.referrer_id;
+        
+        -- Lock and get current values to prevent race conditions
+        SELECT credits, referral_credits, total_referrals 
+        INTO current_credits, current_referral_credits, current_total_referrals
+        FROM profiles 
+        WHERE id = referrer_profile_id
+        FOR UPDATE;
+        
+        -- Handle NULL values safely
+        current_credits := COALESCE(current_credits, 0);
+        current_referral_credits := COALESCE(current_referral_credits, 0);
+        current_total_referrals := COALESCE(current_total_referrals, 0);
+        
+        -- Update the profile with new credit values
+        UPDATE profiles 
+        SET 
+            credits = current_credits + credits_to_award,
+            referral_credits = current_referral_credits + credits_to_award,
+            total_referrals = current_total_referrals + 1
+        WHERE id = referrer_profile_id;
+        
+        -- Optional: Log the action for debugging
+        RAISE NOTICE '✅ Awarded % credits to referrer % (Profile ID: %). New totals -> Credits: %, Referral Credits: %, Total Referrals: %', 
+            credits_to_award,
+            referrer_profile_id,
+            referrer_profile_id,
+            current_credits + credits_to_award,
+            current_referral_credits + credits_to_award,
+            current_total_referrals + 1;
+    END IF;
+    
+    RETURN NEW;
+END;
+$$;
+
+ALTER FUNCTION public.award_referral_credits() OWNER TO postgres;