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--- block_rewards_distribution [06/04/2025 14:05] – [QORT Initial Block Reward Decrease Schedule] crowetic
+++ block_rewards_distribution [06/04/2025 14:50] (current) – crowetic
@@ Line 4: / Line 4: @@
 The block rewards in Qortal are **distributed to every online minter, regardless of the minter who actually 'finds' (signs) the block.** The rewards are based on the **level tier** of the minter and how many 'online' (synchronized and submitting minting signatures) minters are **in each tier** during distribution blocks. In other words, all minters earn a portion of each block's reward by simply running a node (with their 'minting key' assigned to it) and supporting the network. All minters of level 1 and above, are rewarded. Only level 5+ minters can sign new blocks into the chain.
-===== Minting Bullets =====
+===== Minting - Overview / Points of Interest =====
   * Every 2 levels is called a **'tier'**.
@@ Line 24: / Line 24: @@
 ===== Minting Security =====
+==== 'Weighted' Leveling ====
+In order to ensure the security of the chain, **__minting leverages a minter's 'level' in regard to block signing__.** Block signing is the process of creating a new block on the chain, and the 'block signer' is the minter that creates and adds the block agreed by the rest of the network to be the 'valid next block' on the primary chain fork. The validation of blocks and transactions takes place automatically in the Qortal Core, so without specific code modifications by a would-be attempted attacker, no attack is possible at all. However, in order to ensure that a would-be attacker remains would-be, leveraging the 'blocksMinted' of a minter's account as a 'weight' in the determination of the primary block, allows Qortal to ensure that minters who have proven themselves legitimate for a longer time frame, are more likely to sign blocks. This dramatically reduces the potential likelihood of a would-be attacker being successful in any type of attack, as the primary methods of attacking a blockchain require that the would-be attacker sign multiple blocks in a row. The ability to do this on Qortal is extremely low.
-In order to ensure the security of the chain, **minting is also structured based on level in regard to block signing.** Block signing means creating a new block on the chain, and the signer is the minter that creates and adds the block agreed by the rest of the network to be the 'valid next block'.
+Qortal's consensus model leverages a concept called 'key distance' (combined with a weighted variable for level, valid transactions, transaction count, and various other on-chain validated data points in each block) (see [[how_qortal_s_consensus_works|]]) to determine which block created by which minting account is included on the primary chain.
-Minting uses a concept called 'key distance' (combined with a weighted variable for level, and various other data points in each block) (read [[how_qortal_s_consensus_works|]]) to determine which block by which minter is included on the chain.
+==== No 'Block Signer Benefit' ====
+As stated, **the higher level the minter is, the more likely they are to be the block signer**. However, on Qortal, being the block signer (contrary to essentially every other blockchain) does not provide the minting account with any type of advantage. **Being the block signer does NOT earn the signing minter anything 'extra' on the Qortal Network.** This is a **__critical difference__** that is one of highlighted unique aspects of the Qortal Consensus Model. This allows for a **__competition-free ecosystem__** in which **all minters work __together__** to validate, extend, and ensure the integrity of the blockchain. Removing the 'combative' and contradictory nature of PoW and PoS-based systems, and providing a sense of collaboration between the Qortal Minters.
-The higher level the minter is, the more likely they are to be the block signer. However, being the block signer (contrary to essentially every other blockchain) does not 'mean anything' in Qortal in regard to rewards. **Being the block signer does NOT earn the signing minter anything 'extra' in Qortal.** This is a **critical difference** that is one of the main unique factors of Qortal's minting system. This allows for a **competition free system** in which all **minters work together** to secure and grow the chain of transactions. (The 'db' or database, is the blockchain itself and the other core stored information of Qortal.)
+==== Negation of Monetary Influence ====
+Removing the ability to 'buy influence' over the network, is another key differentiating factor of the Qortal Model. Since there is **no 'monetary' benefit to being the block signer** there is no other option for minters on the network aside from working collaboratively and sharing the provided 'harvest' of QORT. Qortal aims to foster a positive and thriving environment within the minting community, one where minters encourage each other and assist one another in a shared goal of keeping the strongest and most well-functioning blockchain possible.
-Since there is **no rewards benefit to being the block signer** there is also **no 'competition' between minters**, they all **work cooperatively** to secure the chain, and are rewarded based on their **overall time contributed** toward that end. All minters start at level 0, and ultimately end at level 10, once at level 10 their influence will still increase, but at an ever-slowing magnitude of overall influence. Making it so that while minters always do increase in effective security and influence, their lower-level minter compatriots may come quite near their higher-level counterparts in influence and network security effectiveness.
+ All minters start at level 0, and ultimately end at level 10, once at level 10 their influence will still increase, but at an ever-slowing magnitude of overall influence[*]. Making it so that while minters always do increase in effective security and influence, their lower-level minter compatriots may come quite near their higher-level counterparts in influence and network security effectiveness.
+==== Proof of Contribution over Time (PoCoT) ====
 Minting is essentially **proof of Contribution Over Time (and Memory Proof-of-Work)**. Qortal leverages Proof of Work, however, it is a different type of PoW, and doesn't max out processors all day long like Bitcoin/Litecoin and many other projects.
+==== MemPoW Algorithm - A Memory-Based Proof of Work====
+--**__Mem__**//ory// **__P__**//roof// **__o__**//f// **__W__**//ork//--
 The **Memory Proof-of-Work (MemPoW)** portion of the consensus mechanism, comes from the **MemPoW algorithm**. Whereas most PoW chains utilize a PoW algorithm with a 'modifiable difficulty' that changes based on how many 'miners' are actively contributing 'hashrate' to the network, Qortal utilizes a **set difficulty** MemPoW, and leverages the algo to **limit the number of minting keys that can be assigned to any given physical computer.** The MemPoW must be leveraged by every minter upon minting key submission, submitting too a 'nonce' generated as a result of the MemPoW's operation. This nonce, validated by all nodes on the network, proves the minter ran the algo, and adds another layer of validation to the minter's signature submission that is utilized to provide the minter with their blocksMinted for that payout round, if submitted within the round's submission 'window'.
@@ Line 39: / Line 47: @@
 The **MemPoW algorithm** is a Memory-based Proof-of-Work (PoW) algorithm utilized in multiple portions of Qortal's code. In regard to minting, the **MemPoW must be computed, and submitted with each minter signature**. MemPoW is also leveraged to prevent 'spam' messages on Q-Chat, as Q-Chat transactions are 'feeless' and would otherwise be able to be executed indefinitely for very minimal effort. Introduction of the MemPoW nonce requirement to Q-Chat transactions, allowed the system to resolve spam issues without requiring the addition of a transaction fee to Q-Chat messages.
-=== A quick list of differences between Qortal's MemPoW and other PoW algorithms in other projects:===
+==== A quick list of differences between Qortal's MemPoW and other PoW algorithms in other projects: ====
   *  **MemPoW** leverages an **established 'difficulty' to result in a verifiable nonce** ensuring the algo's completion.
@@ Line 46: / Line 54: @@
   *  The **MemPoW** algo in regard to Minting on Qortal merely exists as **a method to prevent submission of 'indefinite number of signatures' from a single minting node**. It prevents a single node from submitting more signatures than (ideally 2) the number it can compute utilizing the MemPoW difficulty within the submission window.
   *  **MemPoW** is also **leveraged to prevent 'spamming' on Q-Chat**, which leverages 'feeless' and 'unconfirmable' transactions for messaging. Without the assistance of the MemPoW's 'rate limiting' for accounts with less than 4 QORT balance, an essentially 'unlimited amount' of messages could be sent for the cost of a single low-powered node, and disrupt the usability of Q-Chat entirely.
 {{::qortal_cube_original_by.png?200|}}
-The Qortal Logo while Minting is Active.
+(//The Qortal Logo while Minting is Active.//)
 ===== Minting Levels (Currently Active Distribution Schedule) =====
@@ Line 87: / Line 91: @@
 ===== QORT Initial Block Reward Decrease Schedule =====
-Block 1+ Reward: 5.00 - (June 2020)
+Block #: **1+** Reward: 5.00 QORT/block - (June 2020)
+\\
+Block #: **259,201+** Reward: **4.75** QORT/block
+\\
+Block #: **518,401+** Reward: **4.50** QORT/block
+\\
+Block #: **777,601+** Reward: **4.25** QORT/block
+\\
+Block #: **1,036,801+** Reward: **4.00** QORT/block
+\\
+Block #: **1,296,001+** Reward: **3.75** QORT/block
+\\
+Block #: **1,555,201+** Reward: **3.50** QORT/block
+\\
+Block #: **1,814,401+** Reward: **3.25** QORT/block
+\\
+Block #: **2,073,601+** Reward: **3.00** QORT/block - (June 2025)
+\\
+Block #: **2,332,801+** Reward: **2.75** QORT/block
+\\
+Block #: **2,592,001+** Reward: **2.50** QORT/block
+\\
+Block #: **2,851,201+** Reward: **2.25** QORT/block
+\\
+Block #: **3,110,401+** Reward: **2.00** QORT/block
+\\
+\\
+**ABSOLUTE MINIMUM BLOCK REWARD = 1 QORT/block** (plus transaction fees)
+\\
+\\
+**ABSOLUTE MAXIMUM BLOCK REWARD = 5 QORT/block** (plus transaction fees) (This is the Genesis Block Reward amount.)
-Block 259,201+ Reward: 4.75
+===== More Info =====
-Block 518,401+ Reward: 4.50
+Only **ACTIVE minters are rewarded** each distribution cycle.
+\\
+Currently, **distribution cycles are 1000 blocks**. Every 1000th block is a 'payout block' on which the block rewards and fees for the previous 1000 blocks, combined, are paid out to the minters.
+\\
+//Distribution cycles are subject to change//, as are the percentages rewarded to each level tier. Proposals from the Qortal Community may be made for any modification to any portion of the network and its existing rules. If the proposal is viable, and gets enough support from the community, it will then be sent to the developer group for review. Upon said review, if the proposal is deemed valid  by the developers, it will be determined whether it is possible to build it in its current state, or whether modifications are required. If it is acceptable as-is, it will be given a final vote by the developers, at which point it will be started on if the vote passes. If it is NOT deemed viable for whatever reason, it will be modified by the developers, and sent back to the community for another vote. Repeat until the proposal is both viable, and approved, then built, and implemented.
+\\
+Future methods of rewards for additional account types or concepts, may potentially modify the overall rewards distribution, depending on the concept and its basis. As such, the block rewards will be an ever-changing and evolving concept, with a few static unwavering foundational rules listed below:
+===== Block Rewards =====
-Block 777,601+ Reward: 4.25
+Qortal, unlike most other blockchain-based systems, is a system built with true decentralization and indefinite operation in mind. As such, there is no **'__total coin cap' on the QORT supply.__** The concept of a total cap means that the project cannot possibly last forever. Even only considering the fact that users lose access to accounts with coin, no matter how much preventative effort is made, this will always be the case. Therefore, at some point, there will be no usable coins left on any chain with a total maximum supply of coin. QORT is more than simply a 'currency', it is a 'fuel' providing the means to build and publish data on a truly decentralized distributed data network comprised of a global network of users and their computing devices. It is the future digital realm for the open-minded and free. As such, QORT must always be, and must always be obtainable to be leveraged in this fashion.
-Block 1,036,801+ Reward: 4.00
+Regardless of the fact that no 'total coin supply cap' exists, that does not then say that 'inflation is an issue'. In fact, comparing QORT to essentially any other coin one quickly realizes that the total amount of QORT grows very slowly in comparison to most others, and even without a total supply cap, will not even come close to the total amount of coins that already exist on many other platforms.
-Block 1,296,001+ Reward: 3.75
+\\
+===== QORT Block Reward Details (and potential for post-initial-distribution modification) =====
-Block 1,555,201+ Reward: 3.50
+\\
+The distribution is limited in the following fashion: Approximately every ‘6 months’ (measured in number of blocks, based on a calculation of 60 seconds per block) there is a reduction in reward from its Genesis amount of 5 QORT, by .25, until reaching 2 QORT per block. Thereafter, a vote can potentially be made for an increase (or decrease). This increase may only be up to 1 QORT in either direction (in 0.25 QORT increments) and this vote may only take place one time per ‘year’ (in blocks).
+\\
+For example, if the current block reward is 3 QORT/block, the vote could only result in any of the following: 2, 2.25, 2.5, 2.75, 3, 3.25, 3.5, 3.75 & 4 QORT/block. (Only up to a 1 QORT difference in either direction, in 0.25 QORT increments.) Block reward can only be voted to as low as 1 QORT per block, or as high as 5 QORT per block. These are the minimum and maximum block reward range Qortal will ever potentially see.
-Block 1,814,401+ Reward: 3.25
+**ABSOLUTE MINIMUM BLOCK REWARD = 1 QORT/block** (plus transaction fees)
+\\
-Block 2,073,601+ Reward: 3.00 - (June 2025)
+**ABSOLUTE MAXIMUM BLOCK REWARD = 5 QORT/block** (plus transaction fees) (This is the Genesis Block Reward amount.)
+\\
-Block 2,332,801+ Reward: 2.75
+\\
+\\
-Block 2,592,001+ Reward: 2.50
+[*] = NOTE - The decreasing magnitude of effectiveness for max-level minting accounts has not yet been developed, and as such does not yet hold exact detail that may be described herein. Upon the Qortal Development Group's determination and development here, more detail will be made available.
-Block 2,851,201+ Reward: 2.25
-Block 3,110,401+ Reward: 2.00

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