> 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 dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` 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 optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.