You get the Fed button after part 9 of the Jingle Bell Wreck questline.
You drop a fed instead of tapping a building. You get presents, money and xp the moment you drop them. I haven't visited all my neighbours yet but I assume the max presents earned as it applies to buildings also applies to feds.
When you tap a neighbour's fed in your own town, you also earn presents. I suspect though that you don't earn extra presents when someone taps you fedrs in their town, but I am not certain.
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