SID Reward Calculation
Last updated
Last updated
In the "Future's Finance" blockchain ecosystem, the distribution of rewards to Sole Interest Deployers (SIDs) follows a unique and equitable mechanism that aligns incentives with the network's overall health and sustainability. With a total of 70 coins allocated to SIDs from each block reward, the specific amount each SID receives is determined by the weightage of their burning contribution. This means that the more an SID burns, the greater their share of the block reward. Here’s a brief overview of how this distribution mechanism works:
Total SID Reward Pool: From the total block reward, 70 coins are reserved for SIDs. This significant portion reflects the critical role that SIDs play in securing the network through the Proof of Burnt Stakes mechanism.
Burning as a Measure of Contribution: Each SID's contribution to the network is measured by the amount of cryptocurrency they choose to burn. Burning coins is a deliberate action to remove a certain amount of coins from circulation, effectively reducing the total supply and demonstrating a commitment to the network's longevity and stability.
This method ensures that the rewards are distributed in a way that incentivizes SIDs to contribute significantly to the network’s security through burning, rewarding those who invest more in the sustainability and stability of the blockchain. It's a transparent, equitable system that aligns individual SID incentives with the broader goals of "Future's Finance."