Secondary rewards
To further reward those who help empower and secure the Beam Network and ecosystem, secondary rewards will be introduced. This reward structure is unlike any other and consists of the following:
- Protocol fees generated across the Beam ecosystem
Contracts for autonomous flows of protocol fees (in relation to e.g. BeamSwap and Sphere) are currently being created, audited and are expected to be implemented in due course.
- Seasonal validator incentive grants by Beam Foundation, from its Treasury. The grant will function as a grant to the Beam Network, and be transferred to an autonomous smart contract on it prior to the commencement of each season. Validators and delegators may, in return for securing and validating the Beam Network, earn rewards from such a smart contract.
Validator incentive grants will be used to incentivize validators and delegators to contribute to the security of the Beam Network. The goal is to over time work towards making the Beam Network an entirely self-sufficient ecosystem with no need for such grants. More info about the validator incentive grant system will be shared in due time prior to commencement of the first season, commencing on 1 April 2025.
Similar to the primary rewards, these secondary rewards will flow autonomously to the validators and delegators. 80% of the secondary rewards will flow to validators and delegators staking Node Tokens (based on their respective portion of staked Node Tokens) and 20% of the secondary rewards will flow to validators and delegators staking BEAM (based on their respective portion of staked BEAM).
The total secondary rewards will be determined based on a variety of factors:
- The number of Node Tokens staked.
- The number of BEAM staked.
- The total amount of fees collected from Beam protocols.
- The fees that are distributed through validator incentive grants.
- The commission fee charged to delegators.
- The time Node Tokens or BEAM remain staked during each season.
- Slashing of rewards.