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Rewards

TakeRate​

The TakeRate parameter of an Alliance asset allows a chain to request payments from an Allied chain. The TakeRate is the rate that redistributes a portion of the staked Alliance asset to all stakers. When paired with a Liquid Staking Derivative (LSD), this property allows established chains to pay for newer chains using the asset’s native inflation. This process allows for greater competition between established chains to provide security for new promising blockchains. For more information on Alliance asset parameters, visit the properties page.

The TakeRate is defined as a decimal percentage per year. The interval by which this rate is claimed is determined by the module parameter TakeRateClaimInterval. When executed, the TakeRate amount is deducted from an Alliance asset’s staking pool and deposited into the reward pool, to be distributed to validators and delegators.

Rewards Distribution​

Rewards for staking come from three sources:

  • Native inflation: inflation rewards minted by a chain with the x/mint module enabled.
  • Transaction fees: gas fees or tax fees that are distributed to validators and delegators.
  • TakeRate fees: the annualized redistribution of staked Alliance assets.

These rewards are distributed to stakers using the Cosmos-native x/distribution module. First, rewards are sent to the fee_collector module account. During the next begin block event, all rewards are distributed to validators proportional to their voting power. Delegators can then claim their rewards from validators. For more information on reward calculations, visit the State transitions page.