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.