🪙Reward Distribution

When delegating to any validator that partners with Coaction Network, or when staking CIT to a CIT node, the Coaction Network will pay out rewards to those participants. The latter will be covered in CIT Staking of the Documentation.

Delegators to validators within Coaction Network will earn that project’s native rewards, just as any delegator-validator relationship works in proof-of-stake. For example, a delegator who wants to stake ATOM (Cosmos) tokens can delegate their ATOM stake to whichever validator within Coaction Network that supports Cosmos, and the delegator earns that project's native rewards and the validator takes a cut of those rewards (a commission). However, in addition to the native rewards, delegators to validators that partnered with Coaction Network will also earn CIT tokens. The CIT rewards will follow an emission schedule with a fixed amount of CIT being minted and distributed each epoch. How much a delegator earns in CIT is directly tied to how much commission revenue their stake generates for the Treasury. Key factors that determine a delegator’s rewards distribution are:

• Size of delegation

• APR of native project

• The percentage of commissions the validator elects to send to Coaction Network's Treasury

The split of CIT rewards is 9:1, meaning 90% of CIT flows to delegators and 10% of CIT is awarded to the validator.

The emission schedule for these rewards will be set to 2% of the supply that has not been released, each month. For an illustrative view, see Supply Schedule within the Key Properties section.