Understanding the Q rewards structure

Understanding the Q rewards structure is essential for anyone involved in or considering becoming a part of the Q blockchain network. While we will focus here on the allocation of rewards to root nodes and validators, you must know that there are more actors eligible for rewards under the Q ecosystem.


Default Allocation Proxy

The default allocation proxy (or DAP) serves as the central distribution point for all rewards in the Q rewards ecosystem. The rewards distributed by the default allocation proxy come from the following sources : - The Q token (QGOV) inflation, also known as the "block subsidy." This is a flat amount of tokens minted each block. This is currently the primary source of Q token (QGOV) rewards. - The slashed tokens of a successful validator or root node slashing proposal. - All revenue from the Saving & Borrowing integrated application on the Q HQ. - Future plans for DAO payment for "GaaS" or "Governance-as-a-Service"

Q Token (QGOV) Inflation and Distribution

At the time of writing, the Q token (QGOV) inflation is the primary source of Q token (QGOV) rewards on the Q blockchain. The Q token (QGOV) inflation rate is defined by the blockSubsidy constitutional parameter. At the time of writing, this value is set at 1.5. Given that the Q network operates with a block time of 5 seconds, this equates to an inflation rate of 18 Q tokens (QGOV) per minute, 1,080 per hour, and 25,920 per day, on average.

These newly minted tokens are then distributed among various actors in the Q ecosystem, such as validators and root nodes.

Reward Shares

Each group of users eligible for rewards from the default allocation proxy receives a different proportion of these rewards. The distribution percentages are defined by constitutional parameters.

  • For validators, this parameter is rewardShareValidatorNodes, and it is currently set at 40%.
  • For root nodes, the parameter is rewardShareRootNodes, and it is currently set at 20%.

These constitutional parameters can be subject to change and can be verified directly from the Q HQ app