Delegate Reward Structures

Delegate reward structures define how rewards generated by the network are distributed between delegates and the token holders who vote for them. These structures are a key factor in incentivizing participation and ensuring that delegates remain committed to the protocol.

If rewards are too low, delegates may not have enough incentive to maintain high-quality infrastructure; if they are too high, it may lead to excessive competition and centralization. Finding the right balance is essential for the health of the ecosystem.

These structures are often subject to governance votes, allowing the community to adjust them based on the changing needs of the network.