# `Vbr`

# Abstract

The vbr (Validator Block Rewards) module allows validators to get a recurrent reward each time a new block is proposed, even if such a block does not contain any transaction.

# How it works

During genesis, a pool of tokens is created and it's filled with a decided amount of tokens.
From this point in epoch duration timing, whenever an epoch ends an amount of tokens will be sent to the active validators.

The amount of tokens that will be sent to the validators that proposed the blocks during the epoch is computed using the formula described below.

# Definitions

Block produced in a year, considering a block interval of 5 seconds and a year length of 365 days and 8 hours:
$B = 365.25 \times 24 \times 60 \times \frac{60}{5} = 6,311,520$

Initial rewards pool amount:
$P = 12,500,000$

Number of active validators
$V$

Annual distribution for the $n$ -th validator:
$AD_{n} = S_{n} * 0.5 * \frac{V}{100}$

Where

$S_{n}$ is the amount of bonded tokens of the $n$ -th validator

Possible Epoch duration:
$E = \begin{cases} 60s &\text minute \\ minute*60 &\text hour \\ hour*24 &\text day \\ hour*24*7 &\text week \\ hour*24*30 &\text month \end{cases}$

Yearly pool reward amount for the $y$ -th year:
$P_y = \begin{cases} P &\text{if } y = 0 \\ P_{y - 1} - \sum_{n, e}{R_{n, e}} &\text{if } y > 0 \end{cases}$

Where

$R_{n, e}$ is the reward of the $n$ -th validator at the end of the $e$ -th epoch.

# Formula

Let's define the maximum reward for the $e$ -th epoch as

$R_e = \sum_{v}\frac{AD_{n}}{E}$

# Contents

State
Messages
- Increment Block Rewards Pool
- Set Parameters
Events
- Handlers
Parameters
Client

← Client State →