Reward Tiers

Reward Multipliers Overview

Reward multipliers are calculated based on the points accumulated by each Hardware Provider (HP). The more committed and well-collateralised an HP is, the higher their reward multiplier.

Points System

HPs accumulate points through:

1. Network Collateralisation: The level of collateralisation directly impacts how many points are earned.

2. Commitment Period: The length of time that collateral is locked also contributes to the total points.

The cumulative points for these factors determine the reward multiplier compared to the network average.

Points for Network Collateralisation

Points are allocated based on the degree of network collateralisation:

Network Collateralisation Level	Points Earned
≥0%	1
≥60%	2
≥80%	3
≥100%	4
≥150%	5
≥200%	6

Points for Commitment Period

Points are also earned by HPs based on how much time is left in their collateral commitment period:

Remaining Commitment Period (Months)	Points Earned
≥0	0
≥6	1
≥12	2
≥18	3
≥24	4
≥30	5
≥36	6

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Points to Reward Multiplier

Accumulating 9 points will result in a 100% reward multiplier. Points above or below this baseline will modify the reward percentage in 5% increments per point.

Points Compared to Baseline (9 Points)	Reward Multiplier
4 Points	0.75 (75%)
5 Points	0.80 (80%)
6 Points	0.85 (85%)
7 Points	0.90 (90%)
8 Points	0.95 (95%)
9 Points	1.00 (100%)
10 Points	1.05 (105%)
11 Points	1.10 (110%)
12 Points	1.15 (115%)