Reward

All the Pools validators in the current validator set will be rewarded with transaction fees in POOLS. As POOLS is not an inflationary token, there will be no mining rewards as what Bitcoin and Ethereum network generate, and the gas fee is the major reward for validators. As POOLS is also utility tokens with other use cases, delegators and validators will still enjoy other benefits of holding POOLS.

The reward for validators is the fees collected from transactions in each block. Validators can decide how much to give back to the delegators who stake their POOLS to them, in order to attract more staking. Every validator will take turns to produce the blocks in the same probability (if they stick to 100% liveness), thus, in the long run, all the stable validators may get a similar size of the reward. Meanwhile, the stakes on each validator may be different, so this brings a counter-intuitive situation that more users trust and delegate to one validator, they potentially get less reward. So rational delegators will tend to delegate to the one with fewer stakes as long as the validator is still trustful (insecure validator may bring slashable risk). In the end, the stakes on all the validators will have less variation. This will actually prevent the stake concentration and “winner wins forever” problem seen on some other networks.

Some parts of the gas fee will also be rewarded to relayers for Cross-Chain communication. Please refer to the “Relayers” section below.