Rewarding

Both the validator update and reward distribution happen every day around UTC 00:00. This is to save the cost of frequent staking updates and block reward distribution. This cost can be significant, as the blocking reward is collected on Pools Chain and distributed to validators and delegators.

A deliberate delay is introduced here to make sure the distribution is fair:

The blocking reward will not be sent to validator right away, instead, they will be distributed and accumulated on a contract;

Upon receiving the validator set update into Pools Chain, it will trigger transfers to transfer the reward to custody addresses on the corresponding validators. The custody addresses are owned by the system so that the reward cannot be spent until the promised distribution to delegators happens.

In order to make the synchronization simpler and allocate time to accommodate slashing, the reward for N day will be only distributed in N+2 days. After the delegators get the reward, the left will be transferred to validators’ own reward addresses.