# Node Reward System
# Overview
The system incrementally issues TOP tokens to form a reward pool. 20% of the reward pool is rewards for miner votes, 76% reward to miner workload, and the remaining 4% reward will be give to on-chain governance committee members. For a miner that has set a dividend ratio, all the rewards it receives will be distributed to the accounts of voters who support the miner in accordance with the dividend ratio.
# Total Rewards Issued
The part reserved for rewards by the system creation is 38% of 20 billion, and the annual issuance ratio is 8% of the remaining part of the reserved reward (on-chain governance is adjustable). As the remaining part of the reserved reward decreases year by year, the issued proportion is also decreasing year by year. When the ratio of issuance is reduced to less than 2% (on-chain governance can be adjusted). Afterwards, it will be issued continuously at 2% of 20 billion every year.
Calculation method of annual total reward ratio:
Total reward in the nth year = Max (remaining reserved reward at the beginning of the nth year*8%, 2%*20 billion). The remaining reserved reward value at the beginning of the creation year is 38%*20 billion;
For example, the total reward ratio in the first year=38%*8%=3.04%, and the total reward ratio in the following year=(38%-3.04%)*8%=2.7968%.
# Workload Reward
Workload reward takes 76% of the total reward. The reward percentage is different depending on the work type. The details are as following:
| Work Type | Node Type | Percentage of Total Reward |
|---|---|---|
| Routing | edge node | 2% |
| Auditing | advance node | Clusters divide 10% equally |
| Verification | validator, advance node | Shard divide 60% equally |
# Verification Work Reward
Reward Object
validator node, validator miners and advance miners can serve as validator node.
If you change the miner to a miner that does not contain validator node (such as edge miners) before the rewards are settled, even if you have unsettled validator workload, the corresponding rewards will no longer be issued;
If you unregister the miner during the reward settlement, and never register again, even if you have unsettled validator workload, the corresponding validator reward will not be issued;
If you unregister the miner before the reward is settled, and then re-register the miner before the reward is settled, and the newly registered miner contains a validator node, the validator workload that has not been settled before the unregistration will still be issued.
Workload Verify Statistics
The source of validator leader is recorded in every head of unit block. The quantity of blocks produced by each validator as the leader in the shard is reported to Beacon at regular intervals. Beacon records each validator in each segment. The amount of verification work of the piece is used to calculate the verification work reward.
Reward Rules
Firstly, the total verification work reward is divided equally according to the shards, and then the reward is divided according to the proportion of the verification work of the node in the shard.
verification work reward = validator workload / total shard workload * rewards issued per clock block *Clock block height * 60% / shards
The rewards issued per clock block change along with the on-chain governance parameters change.
# Audit Work Reward
Reward Object
auditor node, validator miners and advance miners can serve as auditor node.
If you change the miner to a miner that does not contain the auditor node (such as validator miner, edge miner) before the reward is settled, even if you have unsettled auditor workload, the corresponding reward will no longer be issued;
If you unregister the miner during the reward settlement and do not re-register, even if you have unsettled auditor workload, the corresponding auditor workload reward will not be issued;
If before the award is settled, the number of your votes changes from ≥ deposit number to <deposit number, even if you have unsettled auditor's workload, the corresponding auditor rewards will no longer be issued;
If you unregister the miner before the reward is settled, and then re-register the miner before the reward is settled, and the newly registered miner includes an auditor node, the auditor's workload reward that has not been settled before the unregistration will still be issued.
Audit Workload Statistics
The source of auditor leader is recorded in every head of unit block. Shards will report block produced by each auditor as the leader in this shard to the Beacon. The Beacon records each auditor in each shards. The summary value of the audit workload is used to calculate the audit work reward.
Reward Rules
Firstly, the total audit work reward (that is, 10% of the total reward pool) is divided equally by the cluster, and then the reward is divided according to the proportion of the audit work of the node in the shard.
audit work reward = auditor workload / total shard workload * rewards issued per clock block * Clock block height * 60% / shards
# Edge Work Reward
Reward Object
edge node, "edge" miners can serve as edge node.
If you change the miner to a miner without edge nodes (such as validator miners, advanced miners) before the reward is settled, even if you have unsettled edge workloads, the corresponding rewards will no longer be issued;
If you unregister the miner before the reward is settled, and then re-register the miner before the reward is settled, and the newly registered miner includes an edge node, the edge work rewards that have not been settled before the unregistration will still be issued.
Reward Rules
The total reward is divided equally, divided every 12 hours.
# Zero Workload
When the validator, auditor node has no workload, the corresponding total workload reward is awarded to a specific public contract account. That is, if a shard/ Cluster is "zero workload" in a statistical period , the shard/cluster reward will be awarded to a specific public contract account; If all Shards/Clusters are "zero workload", the total node workload reward in this round will be awarded to a specific public contract account.
Voters who vote for a zero workload miner will not receive any dividends from the miner workload reward, but the voter will still receive the dividend from the miner perform as other roles (such as edge).
TCC can destroy the amount in public accounts through on-chain governance, or transfer funds to TCC designated accounts.
# Miner's Votes Reward
Reward Object
Miners earn more than 0 votes.
Miner Votes Reward
20% of the entire reward.
Reward Calculation and Distribution Cycle
12 Hours.
Count Votes
Shard regularly reports the aggregated value of votes obtained by each miner in this shard to Beacon, and Beacon calculates the miner vote reward based on the sum of the votes of the miner in all shards to obtain the total number of votes for a certain miner.
Reward Rules
The total miner votes rewards are distributed according to the proportion of the miners' votes.
Miner vote reward=number of votes/total number of votes in the entire network * 20 billion * M% *20%
# Reward Withdraw
Each miner can apply for withdrawal once within 12 hours.
Withdrawal can be credited immediately.
When the miner logs off, the rewards that have been calculated and issued to the contract can continue to be received, but the system will not continue to calculate and issue more rewards to this miner.
# Reward Distribution Process
Business flow: Nodes can check their total remaining amount of rewards to be collected, and apply to complete the collection of rewards. At most once every 12 hours, the reward amount needs to be ≥1000 TOP each time.
Fund flow: Beacon transfers the current reward amount from the 38% mining fund pool (or out of nothing) to the shard-level reward pool every 12 hours → the miner or voter applies for withdrawal, and the reward TOP are transferred to the miner or voter account.
