> For the complete documentation index, see [llms.txt](https://docs.stargate.vechain.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stargate.vechain.org/overview/rewards-structure.md).

# 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.