# 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.

***

### 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 × 70% of validator rewards for the period

***

### 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 r**eward 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.

***

### 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

***

### 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.

***

### **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.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.stargate.vechain.org/overview/rewards-structure.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.