Rewards

Rewards are the economic incentives provided by Services to Operators and Stakers for their participation in securing the Service network.

Participants in the Rewards System

• Operators run the infrastructure and validation systems
• Stakers delegate their assets to Operators as part of the shared security model
• Services distribute rewards to both parties based on their contributions

Rewards Workflow

Distributing Rewards

The rewards distribution process follows these steps:

1. Calculate Rewards

• Services calculate rewards for each Earner based on their own criteria
• These calculations are recorded in a distribution.json file that follows the schema 
• The file tracks accumulative rewards for each Earner

2. Submit Distribution Data

• Services can submit their distribution.json file to the satlayer-rewards repository as a PR
• GitHub Actions automatically generate and store the merkle tree in the repository
• This step simplifies the proof generation process for Earners
• Services can also generate the merkle root locally using the CLI from @satlayer/cli

3. Execute Distribution

• Services call DistributeRewards on the bvs-rewards contract with the generated merkle root
• Before execution, Services must ensure that:
  • The reward tokens are available in sufficient amounts
  • Appropriate allowances are granted to the bvs-rewards contract

Claiming Rewards

Earners can claim their rewards through this process:

1. Generate Proofs

• Earners use @satlayer/cli to generate proofs
• Proofs are specific to each Service and token pair the Earner wishes to claim

2. Execute Claim

• Earners call ClaimRewards on the bvs-rewards contract
• The call includes the merkle proof, leaf index, and other required parameters