Validator Yield Distribution
The validator yield is a crucial component of TON Pools' prize-linked savings model. Here's how it works and how it's distributed:
Yield Generation
Staking: TON deposited by users is staked with validators on the TON network.
Validation: Validators participate in block production and transaction validation.
Rewards: The network rewards validators for their work with new TON coins.
Yield: These rewards constitute the yield, which is then distributed.
Yield Distribution
The yield generated from staking is distributed as follows:
Prize Pool (80%): The majority of the yield goes into the prize pool for user rewards.
Platform Sustainability (20%): A portion is used to maintain and improve the TON Pools platform.
Yield Rate Factors
Several factors can affect the yield rate:
Network activity and transaction volume
Total amount of TON staked network-wide
Validator performance and uptime
TON network upgrades and protocol changes
Understanding validator yield distribution helps you appreciate how your deposits contribute to the TON network's security while generating exciting prize opportunities. It's a win-win for both individual users and the broader TON ecosystem!
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