Node Reward Distribution

Understand how node operators earn protocol rewards and verification fees, and the mechanics behind reward distribution.

The node participates in the daily leaderboard competition through its associated License. The License score is composed of "delegated staked tokens + accumulated rewards." The higher the score, the higher the tier it belongs to, and the greater the reward multiplier.

Reward Acquisition Mechanism:

• License is the basic unit of reward distribution

  • Each License is an independent NFT, representing a node unit that can earn rewards.

  • Rewards are distributed per License, not per wallet.

• Daily calculation of the License's leaderboard score (LicenseScore)

  • The score consists of two parts: DelegatedH + AccruedRewards (rewards accumulated but not yet unlocked).

• Sort all sold Licenses by score and assign Tiers

  • Tier 1: Top 5%, multiplier 1.30×

  • Tier 2: Next 10%, multiplier 1.20×

  • Tier 3: Next 20%, multiplier 1.10×

  • Tier 4: Next 25%, multiplier 1.05×

  • Tier 5: Bottom 40%, multiplier 1.00× (baseline)

• Daily fixed reward pool distribution

  • The total daily reward amount is fixed, determined based on the number of sold Licenses.

  • Assumptions

    • N = number of sold Licenses

    • R = fixed total daily reward

    • B = baseline reward (i.e., the reward each License in Tier 5 receives)

    R=N×B×(0.05×1.30+0.10×1.20+0.20×1.10+0.25×1.05+0.40×1.00)

    Then the baseline Reward: B = R/ (N×1.0675)