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Commissions & Rewards
Validators and Delegators are assigned a percentage of $BONE that are distributed each time a checkpoint* is reached. In addition to that, they will be allocated with a portion of TREAT token.
A commission is a fee taken by the validator for the operation and maintenance of the node. Rewards are distributed based on the amount of tokens staked by each of them, after validator commissions.
Let's use an example to understand two scenarios. Please note that these examples are for illustrative purposes only.
At checkpoint time there's 100 reward units to be distributed.
- A Validator has assigned a commission rate of 10% and has staked 20,000 units.
- Delegator A has staked 12,000.
- Delegator B has staked 8,000 units.
This results in a total of 40,000 units staked (50% from Validator and 50% from Delegators).
Rewards Distributed at Checkpoint:
- Validator Commission: 10 units (10% commission * 100 units distributed)
- Total Stake Rewards: 90 units (100 units distributed less validator commission)
- Commission: 10 units (10% * 100 units distributed)
- Stake Rewards: 45 units (50% * 90 units of Total Stake Rewards)
Delegator A receives:
- Stake Rewards: 27 units (30% * 90 units of Total Stake Rewards)
Delegator B receives:
- Stake Rewards: 18 units (20% * 90 units of Total Stake Rewards)
*Checkpoint time to be confirmed once the network is running. **$TREAT Token is not deployed at this moment, so it doesn't exist. Please, be aware of scams.