> For the complete documentation index, see [llms.txt](https://docs.humanity.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.humanity.org/zkproofer-node/what-is-the-zkproofer-node/node-reward-distribution.md).

# Node 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)**


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