> For the complete documentation index, see [llms.txt](https://docs.lycanchain.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lycanchain.com/staking-and-rewards/getting-rewards.md).

# Getting Rewards

**Reward Calculation and Distribution at the End of Epoch**

1. **Annual Inflation Rate**: Rewards are generated based on an annual inflation rate of 2.5%, applied to the total staked amount in the network.
2. **Block Rewards**: The total block rewards for each staking epoch are distributed among all active validator pools. A staking epoch is a predefined period during which validators participate in consensus.

**Detailed Reward Distribution**

**Step-by-Step Reward Calculation**

1. **Determine Total Rewards for Epoch**:
   * Calculate the total stake amount in the network.
   * Apply the annual inflation rate to determine the new tokens to be distributed as rewards.
   * Example: \
     \
     $$\text{newCoinsPerEpoch} = \text{totalStakeAmount} \times \left( \frac{\text{annualInflationRate}}{\text{numberOfEpochsPerYear}} \right)$$\
     \
     Here, `numberOfEpochsPerYear` depends on the length of each staking epoch.
2. **Calculate Pool Rewards**:
   * Divide the total rewards equally among all active validator pools.
   * Example:\
     \
     $$\text{poolReward} = \frac{\text{newCoinsPerEpoch}}{\text{numberOfActiveValidatorPools}}$$

**Distribution Within Pools**

1. **No Delegators**:
   * If a validator has no delegators, they receive 100% of the pool rewards.

2. **Delegators' Stake ≤ 70%**:
   * When the combined stake of delegators is less than or equal to 70% of the pool, the rewards are distributed proportionally:
     * **Validator Reward**: <br>

       $$validatorReward=poolReward×(  validatorStake / ​ totalPoolStake )$$

     * **Delegator Reward**: <br>

       $$delegatorReward=poolReward×(  delegatorStake / ​ totalPoolStake )$$

3. Delegators' Stake > 70%:
   * When the combined stake of delegators is less than or equal to 70% of the pool, the rewards are distributed proportionally:
     * **Validator Reward**: <br>

       $$validatorReward=poolReward×0.30$$

     * **Delegator Reward**: <br>

       $$delegatorReward=poolReward×0.70×(  delegatorStake / ​ totalPoolStake )$$

**Example Scenarios**

1. **Single Validator**:
   * **Stake**: Validator - 1,000 coins
   * **Reward Distribution**: Validator - 100%
2. **One Delegator**:
   * **Stake**: Validator - 1,000 coins, Delegator - 250 coins
   * **Reward Distribution**: Validator - 80%, Delegator - 20%
3. **Multiple Delegators** (≤70% Stake):
   * **Stake**: Validator - 1,000 coins, Delegators - 2,000 coins
   * **Reward Distribution**: Validator - 33.33%, Delegators - 66.67%
4. **Multiple Delegators** (>70% Stake):
   * **Stake**: Validator - 1,000 coins, Delegators - 3,000 coins
   * **Reward Distribution**: Validator - 30%, Delegators - 70%

**Claiming Rewards**

Participants can claim their rewards by invoking the `claimReward` function, specifying the staking address of the pool. This function transfers the participant's portion of the reward from the reward contract balance to their personal balance.

**Additional Reward Components**

* **Transaction Fees**: Collected by validators for transactions processed in their blocks.
* **Bridge Fees**: Collected when assets are transferred between chains and distributed among validators and delegators according to their stakes.

#### Summary

The reward distribution system on Lycan Chain is designed to be fair and incentivizing for both validators and delegators. By ensuring proportional and capped rewards, the system promotes active participation and network security. The detailed calculations and examples provided help clarify how rewards are calculated and distributed among participants.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.lycanchain.com/staking-and-rewards/getting-rewards.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.