Economics

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Inflationary Mechanism

• Annual Inflation Rate: The RVR token features an initial annual inflation rate of 8%, which is programmed to decrease linearly over a period of 20 years, reaching a final inflation rate of 2%. This gradual reduction is intended to decrease the rate of new token issuance over time, aligning with the expected maturation and growth of the network.

• Epoch-Based Distribution: Inflation rewards are distributed equally among all active Node Operators at the end of each epoch, which occurs bi-weekly. Therefore, every 2 weeks, the inflation reward distributed is calculated as (Yearly Inflation Rate / 26), ensuring a steady and predictable flow of rewards to active participants.

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Reward Allocation and Fees

• Node Operator Fees: Each Node Operator has the autonomy to set a percentage fee for their services. This fee is subtracted from the total inflation rewards allocated to the Node Operator for the epoch.

• Distribution to Delegators: After the deduction of the Node Operator’s fee, the remaining inflation rewards are distributed pro-rata among the delegators of that Node Operator. This mechanism ensures that both Node Operators and their delegators are rewarded for their contribution to the network’s security and operability.