Rewards

Introduction

In the dynamic landscape of decentralized finance, the Splendor Blockchain introduces a groundbreaking rewards system designed to empower and incentivize our community of miners, or also knows as node operators. This innovative approach not only fosters active participation but also ensures a fair and sustainable distribution of rewards.

Rewarding Nodes:

At the core of our rewards system is the recognition that miners play a pivotal role in the security and functionality of the Splendor blockchain. Every 10 minutes, a fixed amount of 3.125 SPL is generated and directed to a dedicated smart contract known as the "Reserve Pool." This contract serves as a reservoir, accumulating SPL tokens that can only be exchanged for SDR Special Drawing Rights tokens with ticker symbol XDR which miners receive as rewards for running a node.

This accumulation ensures a consistent reserve of SPL that is not circulating, creating scarcity for Splendor coins.

Rather than distributing SPL directly, Splendor introduces an extra layer of sophistication. The accumulated SPL rewards in the reserve pool back up the minting of Special Drawing Rights tokens. These tokens with ticker symbol XDR are rewarded to the miners for their computational resources, storage, and transaction validations. When XDR is swapped for SPL, the XDR tokens are burned. Anyone that holds SPL can mint XDR based on the exchange between the two digital assets, and anyone that holds XDR can receive SPL.

Node operators actively contributing to the Splendor blockchain are eligible to receive their rewards in XDR tokens. This innovative choice not only ensures stability but also reflects a global perspective, aligning with the diverse economic landscapes represented by the basket of fiat currencies which SDR is tracking.

The consistent generation and distribution of rewards encourage ongoing engagement from node operators, contributing to the overall health and longevity of the Splendor blockchain.

In summary, the Splendor Blockchain rewards system stands as a testament to the commitment to innovation and fairness. Node operators are not only incentivized but also contribute to the robustness and global inclusivity of the Splendor blockchain.