# Reward Rules

**L1 node reward system adjustment**

We have adjusted the reward system of L1 nodes from task allocation system to rental system, and introduced for the first time a penalty mechanism to penalize the stability of nodes and certain cheating behaviors.

**L1 node reward rule**

**Rewards per 5 min**

1. **Basic formula:**

$$
R\_{5min}=\frac{R\_{daily}}{N\_{intervals}} \*AR
$$

2. **Definitions:**

* $$R\_{5min}$$= Rewards per 5 min
* $$R\_{daily}$$= Total Rewards per day (200,000 TNT3)
* $$N\_{intervals}$$= Number of times rewards are issued per day (288 times) 𝑁 N
* $$AR$$= Availability rate（Expressed as a percentage, for example, 95% = 0.95）

3. **Basic rewards calculation:**

   

$$
R\_{base} = \frac{R\_{daily}}{N\_{intervals}} = \frac{200,000}{288} \approx 694.44 \text{ TNT3}
$$

4. **Actual rewards calculation:**

   

$$
R\_{5min} = R\_{base} \times AR
$$

**Availability Rate**

 

$$
AR = \left( \frac{H\_{participated}}{H\_{total}} \right) \times 100%
$$

**Definitions:**

* $$AR$$= Availability Rate
* $$H\_{participated}$$= Number of participated heartbeats in the recent 7 days
* $$H\_{total}$$= Total number of heartbeats the node need to participate in the recent 7 days

*<mark style="color:red;">\*If a node has been online for less than 7 days, the calculation will be based on the actual number of days online. In addition, the first and latest day that the node joined are not counted in the online rate calculation.</mark>*<br>

**Rewarding rule**

The specific criteria for rewarding based on the availability rate of the node are as follows:

**AR = 98% - 100%**

\- 110% rewards

* $$R\_{5min} = 694.44 \times AR \times 1.10$$<br>

**AR = 95% - 98%**

\- 100% rewards

* $$R\_{5min} = 694.44 \times AR$$<br>

**AR = 85% - 95%**

\- 80% rewards

* $$R\_{5min} = 694.44 \times AR \times 0.80$$<br>

**AR = 30% - 85%**

\- 50% rewards

* $$R\_{5min} = 694.44 \times AR \times 0.50$$<br>

**AR < 30%**

\- No rewards

* $$R\_{5min} = 0$$<br>