Reward Distribution
Block rewards are shared among validators based on their staking power through Substrate's native reward mechanism. The total reward, R, includes a base reward, transaction fees, and an elasticity factor to keep incentives stable: R = R_base + Σ(Fees) × (1 + ε × ValidatorParticipation/TargetParticipation)
Where
R_base = 10 coins: A fixed reward per block.
Σ(Fees) ≈ 5 coins: Total fees from weight-based transaction costs.
ε = 0.2: A factor to adjust rewards dynamically.
ValidatorParticipation: The fraction of active validators, e.g., 0.75.
TargetParticipation = 0.8: The desired participation rate.
The reward for validator i is: R_i = R × (W_i / Σ(W_j))
Example Calculation
Assume ValidatorParticipation = 0.75: R = 10 + 5 × (1 + 0.2 × 0.75/0.8) R = 10 + 5 × (1 + 0.1875) = 10 + 5.9375 = 15.9375 coins
For validator i with W_i = 143,100.003 and total staking power Σ(W_j) = 10,000,000: R_i = 15.9375 × (143,100.003 / 10,000,000) 143,100.003 / 10,000,000 ≈ 0.01431 R_i = 15.9375 × 0.01431 ≈ 0.228 coins/block
Note: The economic model presented here is preliminary and will require thorough simulation and testing. Our ongoing research includes developing comprehensive economic simulations to ensure validators receive sufficient compensation to justify their computational and storage contributions while maintaining system security. Parameters will be adjusted based on these findings before mainnet deployment.
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