Rewards Structure

The reward system in Stargate is designed to incentivize both participation and long-term engagement in maintaining the VeChain network. Delegators generate rewards by staking their NFTs with active validators who participate in block production. Every time a validator mines a block, a portion of the mining rewards is shared with its delegators.

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Reward Distribution

For every block mined by the validator, the rewards are allocated as follows:

• 30% of the rewards are retained by the validator.

• 70% of the rewards are distributed among the delegators proportionally to their stakes.

A user's rewards are calculated based on their share of all delegations to that validator:

• User's contribution = VET staked * Reward Multiplier

• User's share = Their contribution ÷ Total contributions to validator

• User's rewards = Their share × Total validator rewards for the period

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What Affects Reward Amounts?

Two main factors determine how much a user earns:

1. Amount of VET staked: More VET means a larger share

2. NFT Level/Tier: Higher-tier NFTs have reward multipliers that boost the effective stake

3. Amount of active delegators for that validator: more delegators means more users to share the rewards with

Each NFT tier is associated with a reward multiplier that enhances the user's share of rewards. The tiers and their respective multipliers are as follows:

Category	Type	Reward Multiplier
X	Mjolnir X	5
X	Thunder X	4
X	Strength X	3
X	VeThor X	2
Eco	Mjolnir	3.5
Eco	Thunder	2.5
Eco	Strength	1.5
Eco	Flash	1.3
Eco	Lightning	1.15
Eco	Dawn	1

To calculate the "effective" stake for reward distribution, use the formula:

$$\text{Effective Stake} = \text{VETStaked} \times \text{RewardFactor}$$

This calculation ensures that users with higher-tier NFTs receive a proportionately larger share of the rewards.

For example, a premium tier NFT with a 1.5x multiplier means a user's 1,000,000 VET stake counts as 1,500,000 VET when calculating their share of rewards. This means they earn more rewards than someone with the same VET amount but a basic-tier NFT.

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Reward Periods

Rewards are distributed at the end of each validator’s period:

• Validator period durations: 7, 15, or 30 days

• During an active period: rewards are being generated but remain locked

• At the end of the period: locked rewards become claimable

Rewards fall under two categories:

• Locked Rewards: earned but not yet claimable until the current validator period ends

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Claiming Rewards

Users can claim their rewards in the following ways:

• Manual Claim: by interacting with the claim function

• Automatic Claim: when users unstake or switch validators, claimable rewards are automatically distributed

Users can claim rewards accumulated from any completed periods, even if many periods have passed. Rewards must be claimed sequentially, and claiming out of order will revert.

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Important Considerations

• Hayabusa mainnet transition period: From December 2, 2025 to December 9, 2025, no rewards will be generated.

• Delegation isn’t instant: it becomes active only when the validator starts a new period

• Exit isn’t instant: delegation exits are only processed at the start of the validator's next period

• Validator selection matters: if a validator doesn’t mine blocks, no rewards are generated

• NFT transfers: delegation remains active if the NFT is transferred; locked and claimable rewards move with it

• Pending rewards on exit or switch: all claimable rewards are automatically claimed when exiting delegation or unstaking

This structure aligns reward eligibility, validator activity, and delegator behavior under one cohesive system, balancing fairness and transparency for all participants.