Reward Process

The Reward Process in the Yamata network is designed to promote fairness and transparency in the exchange by ensuring that both Validating Nodes (VNs) and the Sequencer are rewarded based on their performance, ensuring that rewards are distributed fairly for proper behavior while maintaining the integrity of the network.

Reward Process Flow

1. Transaction Fee Distribution - where fees are split into four different buckets for Validating Nodes (VNs), Yamata, the Future Reward Pool, and the Treasury.

2. Challenge Results - If VNs successfully challenge the Sequencer, they are rewarded from the Treasury. If the challenge fails, the Sequencer receives the locked fees.

3. Validating Nodes (VNs) Rewards - given to VNs in the form of transaction fees, Treasury balance (when applicable), and base rewards from tokenomics for validating and overseeing the Sequencer.

4. Withdrawal Process - VNs can withdraw their rewards at any time, but slashing penalties are applied based on their reputation.