> For the complete documentation index, see [llms.txt](https://docs.xyo.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xyo.network/xyo-layer-one/rewards/step-rewards.md). # Step Rewards Step Rewards in XYO Layer One are designed to promote sustained participation by rewarding validators, producers, and passive stakers at specific milestone blocks. ### Key Features * **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) ### Reward Pool Growth Over Time * 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. ### Proof of Participation * 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.xyo.network/xyo-layer-one/rewards/step-rewards.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.