Reward Calculation Formula

Base Rewards

Base rewards are distributed to all Checkers who successfully complete tasks. The rewards are proportional to the number of tasks correctly completed by a Checker relative to the total tasks completed across the network.

Key Features of Base Rewards

1. Allocation:

• 20% of Total Platform Tokens: A fixed 20% of the total token supply is allocated exclusively for the Base Rewards pool.

• Gradual Release Over 156 Weeks: The allocated tokens are distributed steadily over 3 years, ensuring a consistent reward structure.

2. Distribution Frequency:

• Daily Calculations and Distributions: Base rewards are calculated daily and distributed accordingly to ensure Checkers are consistently incentivized for their contributions.

Calculation Formula for Base Rewards

Each Checker’s Base Reward is determined as:

$${Base Reward_{checker}} = \frac{\frac{Total Tokens Allocated to Base Rewards ​ }{156 \times 7}}{Daily Active Nodes }$$

Example:

• Total token supply of $KAI: 1 billion (1B)

• 20% of total supply designated for checker node rewards

• Network capacity: 10000 active members

• Distribution period: 156 weeks (3 years)

Calculation Formula

$$RewardPool_\text{ per day} = \frac{1,000,000,000 \times 0.2}{ 156 \times 7} \approx 183150 \text{ KAI}$$

Note: Nodes must maintain 24/7 operation to qualify for rewards.

Rewards for a node:

$$RewardPool_\text{ per day per node} = \frac{183150}{ 10000} \approx18.3150 \text{ KAI}$$

Summary of Base Reward Distribution

1. Consistency: Rewards are calculated and distributed daily to ensure timely incentives.

2. Proportionality: Checkers are rewarded based on their actual contributions relative to the total network performance.

3. Equity: The system ensures that every Checker receives a fair share of the daily pool based on their tasks completed.

4. Sustainability: The gradual release of rewards over 156 weeks maintains a long-term incentive structure while preventing oversaturation of tokens in the ecosystem.

By following this detailed structure, the reward mechanism ensures fairness and motivates Checkers to perform consistently.