Network Rewards

In order to provide an incentive for securing the Lisk network, transaction fees on the network are distributed equally among the active delegates. In addition, a block generation reward (aka forging reward) is distributed to each block generator.

Block Rewards

As with bitcoin and nearly all other blockchain systems, Lisk rewards the block generator a fixed amount of tokens per block successfully generated and accepted by the system. In Lisk's system, all active delegates that successfully participate are rewarded for securing the network.

The timeline for these block rewards are represented in the following figure:

Block Reward Reduction

milestones: [
500000000, // Initial Reward begins at block 1,451,520
400000000, // Milestone 1 begins at block 4,451,520
300000000, // Milestone 2 begins at block 7,451,520
200000000, // Milestone 3 begins at block 10,451,520
100000000 // Milestone 4 begins at block 13,451,520
],

The block reward linearly decreases over the lifetime of the network, providing significant incentive to actively participate as an active delegate. The reward will decrease every 3.000.000 blocks from the initial reward block.

Round Fees

The second incentive provided by the system comes in the form of round fees. A round, described in section 6.1, comes to a close after the number of specified blocks has been generated. During this closure process, all transactional fees are aggregated and subsequently split between all active participates in the round. These fees can provide significant reward for each participant outside of the block generation reward, provided there is significant transactional activity present in the system.

It is possible for a delegate to earn multiple shares of these fees. This may occur if a delegate forges multiple blocks within a round. In most circumstances this will not occur, however occasionally another delegate node may be offline during the delegate's assigned slot and subsequently will be unable to generate a block for the assigned slot. This means that the delegate misses its slot and another delegate will therefor generate multiple blocks during the round instead.


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