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Update source/docs/casper/concepts/design/rewards.md
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Co-authored-by: Iulia Popescu <[email protected]>
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AlexanderLimonov and ipopescu authored Apr 22, 2024
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Expand Up @@ -34,7 +34,7 @@ In each round, a total reward pool is shared among all participating validators

The total reward pool for a block is determined by the `round_seigniorage_rate` setting in the chainspec. This value, together with current total supply and minimum round length, is used to compute the full allocation of rewards for a particular block. The rate itself is set to result in a given target annual inflation, provided that validators fully participate in the rewardable processes described above.

Each switch block triggers a reward calculation. To account for potential network lag delaying the timely arrival of signatures for finalized blocks, the calculation "looks back" into previous eras. The number of prior blocks to look up is specified using the `signature_rewards_max_delay` setting in the chainspec.
Each switch block triggers a reward calculation. To account for potential network lag delaying the timely arrival of signatures for finalized blocks, the calculation "looks back" into previous eras. In particular, this enables rewards for switch blocks, which was impossible with the prior Highway-specific calculation. The number of prior blocks to look up is specified using the `signature_rewards_max_delay` setting in the chainspec.

Blocks carry information on their proposer and the finality signatures collected for several past blocks, the depth being determined by the `signature_rewards_max_delay` parameter. Global state contains data on token supply and validator weights as part of the Mint and Auction states. Based on these inputs, the rewards are calculated according to a formula. Rewards are designed to be proportional to weight on average, as long as blocks are created and the finality signatures are propagated and published in a timely manner. <!-- TODO Link to the formula in the CEP or elsewhere -->

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