Reward is based on what???

[August]

Originally Posted by Platapus

They give trophies to all the kids for two reasons

1. It keeps the kids motivated to stay on the team

2. It keeps the parents motivated to continue paying.

If the kid loses interest, the money stops coming in
If the parents lose interest, the money stops coming in

The trophies are just a financial investment.
I don't think it is socially any deeper than that.

Follow the money

I think you've nailed the reason but I think Frame is talking more about the unintended effect.