> For the complete documentation index, see [llms.txt](https://change-chain-1.gitbook.io/change-chain/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://change-chain-1.gitbook.io/change-chain/mining/mining-rewards.md).

# Mining Rewards

## Miner Rewards

To secure the Change Chain network, miners contribute computational resources and are rewarded through block rewards and transaction fees.

## **Block Rewards**

### **Adaptive Reward System**

**Equation:**

$$
Annual\ Reward\ Rate(%)
\=\left(
Active\ Mining\ Power(%)
3.5%\times50%
\right)
$$

**Example Calculation:**

If 25% of the total mining power is active:

$$
Annual Reward Rate=(3.5%×50%25%)=7%\text{Annual Reward Rate} = \left( \frac{3.5% \times 50%}{25%} \right) = 7%Annual Reward Rate=(25%3.5%×50%​)=7%
$$

**Explanation:**

* The reward rate adjusts inversely with the active mining power to incentivize participation.
* Targeting a reward rate of **3.5% annually** when 50% of the network's mining power is active.
* **Formula**:
  * **Annual Reward Rate (%) = (3.5% × (50% / Active Mining Power %))**
* Ensures fair compensation regardless of total mining power engaged.

### **Epoch-Based Distribution**:

* Rewards are calculated and distributed every epoch (e.g., every 6,400 blocks).
* Allows for smooth adjustments and predictable reward schedules.

## **Transaction Fees**

* **Equal Distribution**:
  * Transaction fees collected are proportionally distributed among miners based on their contributed hash rate.
* **Incentivizing Participation**:
  * Higher network activity leads to increased fees, encouraging miners to maintain and upgrade infrastructure.