# Block Rewards

XYO Layer One incentivizes active block production through Block Rewards. These rewards are granted to block producers every time they successfully create a new block.

### Key Features

* **Earned by:** Block Producers
* **Distribution:** Directly assigned to the producer's configured address
* **Frequency:** Every block
* **Purpose:** Encourages ongoing block creation and secures the network

### Reward Transfer

Block rewards are split between:

* **Producer Address:** A configurable address that receives part of the reward. In most cases, this address is the block producer's address.
* **Step Reward Pool:** The remainder is added to the growing Step Reward Pool

This dual allocation supports both immediate incentives and future network-wide participation through Step Rewards.