> For the complete documentation index, see [llms.txt](https://docs.kaisar.io/kaisar-network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kaisar.io/kaisar-network/kaisar-architecture/products/kaisar-onenode/kaisar-checker/what-is-the-kaisar-checker-node/reward-calculation-formula.md).

# 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.