GM!

As you already know, the Incognito network is run by validators and validators will earn mining rewards as long as they help verify transactions and build the network.

The rewards will be distributed equally among the validators. Previously, the number of fixed nodes run by the core team made up the majority.

As we keep moving forward decentralization, the number of fixed nodes reduced to 16 at the moment, only accounting for 34% of the network committee. As a result, 66% of the shard committee rewards will be offered to the community.

Then, the interest you can earn might increase up to 86% APR.

Let’s look closely at the calculations that make the rate of 86% APR reasonable.

First of all, the total PRV reward each validator can earn per month is calculated as follows:

`PRVRewardPerValidator = (PRVRewardInMonth - PRVRewardInMonth * YEAR_DAO_RATE - BEACON_REWARD_PRV - FIXED_NODE_REWARD_PRV) / (activeValidator - BEACON_NODE_COUNT - FIXED_NODE_COUNT * SHARD_COUNT)`

Then,

`averageAPR = PRVRewardPerValidator * 100 / 1750 * 12`

To be specific:

YEAR_DAO_RATE = 7% - *the percentage of block rewards granted to DAO*

BEACON_REWARD_PRV = 18673 - *the amount of PRV rewards paid to Beacon chain validators per month*

FIXED_NODE_REWARD_PRV = 168192 - *the amount of PRV rewards paid to Shard chain’s fixed nodes per month*

item.activeValidator = 3500 - *the number of validators at the moment*

BEACON_NODE_COUNT = 7 - *the number of Beacon chain’s nodes*

FIXED_NODE_COUNT = 16 - *the number of each Shard chain’s’ fixed nodes*

SHARD_COUNT = 8 - *the number of shard network*

Substitute numbers into the formula and we will get

% APR = (595,123.2 - 595,123.2 * 7% - 18673 - 168192) / (3500 - 7 - 128) * 12 * 100 / 1750 = 86.6%

Calculation done!