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:

$$Annual Reward Rate=(3.5$$

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.