🎁 Validator Reward Mechanism

On Renergy Blockchain, validators are economically incentivized for securing the chain and maintaining reliable operations. Rewards are structured to encourage uptime, honest behavior, and long-term participation.

Validators earn rewards from three distinct sources, each aligned with network health.


🧩 1. Block Production Rewards

  • Validators receive rewards when they successfully propose and validate new blocks

  • This mechanism encourages validators to remain online and follow consensus rules

  • Consistent block participation directly increases earning potential

Block rewards form the foundation of validator incentives.


💳 2. Transaction Fee Earnings

Transaction fees on Renergy are divided into two components:

  • ♻️ Base Fees

    • Permanently burned

    • Reduce circulating supply over time

    • Introduce a deflationary pressure on RNGY

  • Priority Fees (Tips)

    • Paid directly to the block validator

    • Incentivize fast inclusion and transaction prioritization

    • Increase validator revenue during high network usage

This model balances user costs with validator incentives.


🤝 3. Delegation-Based Commission

  • Validators earn a percentage of rewards generated by delegated stake

  • Each validator sets their own commission rate transparently

  • Delegators receive the remaining rewards after commission is deducted

This system rewards validators for reputation, reliability, and community trust.


📊 Reward Sources Overview

Reward Source
Recipient
Description

Block Rewards

Block proposer & validator

Earned for producing and validating blocks

Priority Fees

Block validator

Tips from included transactions

Delegation Commission

Validator

Percentage of delegator-generated rewards


The Renergy reward structure is designed to be fair, transparent, and performance-driven, ensuring validators are compensated for real contribution while supporting a sustainable and decentralized network.

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