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Step Rewards in XYO Layer One are designed to promote sustained participation by rewarding validators, producers, and passive stakers at specific milestone blocks.
Earned by: Block Producers, Chain Validators, Pending Transaction Validators, System Stakers
Distribution: From the Step Reward Pool at milestone blocks
Purpose: Incentivizes long-term protocol engagement and decentralized network health
Triggers: On Milestone Blocks (Step Triggers)
Every block contributes a portion of its reward to the Step Reward Pool.
Since distributions only occur at milestones and never deplete the pool fully, the reserve grows over time.
Participants can submit a participation transaction to become eligible for Step Rewards.
These transactions prove activity and put stake at risk for slashing, increasing accountability.
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