Reward Distribution Formula

Reward = (Validator Stake / Total Network Stake) × Daily Emission × Performance Multiplier

Performance Multiplier Based on Uptime:

• 99-100% uptime: 1.0x (full rewards)

• 95-99% uptime: 0.8x (80% of rewards)

• 90-95% uptime: 0.5x (50% of rewards)

• Below 90% uptime: 0x (no rewards + risk of slashing)

Emission Schedule (10-Year Distribution):

Year	Annual Emission	Daily Emission	Approximate APY*
1	1,200,000 BTCM	3,288 BTCM	18-25%
2	1,000,000 BTCM	2,740 BTCM	15-20%
3	900,000 BTCM	2,466 BTCM	12-18%
4	750,000 BTCM	2,055 BTCM	10-15%
5	600,000 BTCM	1,644 BTCM	8-12%
6-10	328,000 BTCM/yr	900 BTCM	5-10%

_{*APY varies based on total network stake and individual validator performance}

Example Validator Earnings:

Scenario 1: Large Validator

• Stake: 100,000 BTCM

• Uptime: 99.5%

• Assuming total network stake: 3,000,000 BTCM (Year 1)

• Daily rewards: (100,000 / 3,000,000) × 3,288 × 1.0 = ~109.6 BTCM/day

• Monthly rewards: ~3,288 BTCM

• Annual rewards: ~40,000 BTCM (40% APY)

• Monthly value at $6: ~$19,728

• Annual value at $6: ~$240,000

Scenario 2: Small Validator

• Stake: 10,000 BTCM (minimum)

• Uptime: 99%

• Assuming total network stake: 3,000,000 BTCM (Year 1)

• Daily rewards: (10,000 / 3,000,000) × 3,288 × 1.0 = ~10.96 BTCM/day

• Monthly rewards: ~329 BTCM

• Annual rewards: ~4,000 BTCM (40% APY)

• Monthly value at $6: ~$1,974

• Annual value at $6: ~$24,000

Scenario 3: Delegated Staker

• Delegation: 1,000 BTCM

• Validator commission: 10%

• Validator uptime: 99%

• Daily rewards: ~1.096 BTCM × 0.9 (after commission) = ~0.986 BTCM/day

• Monthly rewards: ~29.6 BTCM

• Annual rewards: ~360 BTCM (36% APY after commission)

• Monthly value at $6: ~$178

• Annual value at $6: ~$2,160