# Node Reward Rules v0.2

## TNT4 Node Reward Rules v0.2

### Overview

To optimize the Titan Network's economic model (tokenomics) and provide more stable and equitable rewards for contributors, we are introducing the TNT4 Node Reward Rules v0.2. This version implements a dynamic reward calculation mechanism based on the Time-Weighted Average Price (TWAP) and introduces a 2x Resource Contribution Reward.

### Economic Model Optimization Details

We are introducing a dynamic reward calculation mechanism based on the **48-hour Time-Weighted Average Price (TWAP)**. This aims to ensure that node operator returns are more stable and less affected by short-term market price volatility. Through the **Double Resource Contribution Reward (2x)** mechanism, every contributor providing resources to the network receives a fairer return on their contribution.

**Note:** The TWAP mechanism helps balance token supply with application demand. By smoothing price fluctuations, it encourages long-term holding and network contribution over short-term speculative behavior, laying a more solid foundation for the project's long-term sustainable growth.

### Core Reward Mechanism v0.2

#### 1. Time-Weighted Average Price (TWAP) Calculation Model

* **Mechanism:** Reward calculations will be based on the token's Time-Weighted Average Price (TWAP) over the preceding **48 hours**.
* **Purpose:** To mitigate the impact of short-term abnormal price fluctuations on node rewards, providing more predictable and stable reward expectations.

#### 2. Double Resource Contribution Reward (2x Reward)

* **Mechanism:** The actual value your node generates for the Titan Network (e.g., revenue from providing bandwidth, storage, etc.) will be rewarded with **2 times** the equivalent value in tokens.

#### 3. Reward Calculation Formula

To illustrate the reward calculation process more clearly, we use the following formula:

`Reward_Tokens = (Value_Generated * Reward_Multiplier) / Price_TWAP_48h`

Where:

* `Reward_Tokens`: The final amount of Titan tokens you receive as a reward.
* `Value_Generated`: The value generated by your node's contribution to the network during a specific period (measured in a denomination unit, e.g., USD).
* `Reward_Multiplier`: The reward multiplier factor, which is **2** according to the v0.2 rules.
* `Price_TWAP_48h`: The **48-hour Time-Weighted Average Price** of the Titan token at the time of reward calculation (expressed in denomination unit per Token, e.g., USD/Token).

#### 4. Reward Calculation Example

If your node generated value equivalent to $10 during a reward cycle, according to the new rules and formula:

* `Value_Generated` = $10
* `Reward_Multiplier` = 2
* Assuming `Price_TWAP_48h` at calculation time = $0.05 USD/Token
* Calculation:
  * Rewarded Value = `Value_Generated` \* `Reward_Multiplier` = $10 \* 2 = $20
  * `Reward_Tokens` = $20 / ($0.05 USD/Token) = 400 TNT4
* You will receive **400 TNT4 tokens** as a reward (of which 60% is immediately liquid, and 40% is locked).

#### 5. Reward Release and Lock-up Rules (Vesting)

All rewards issued under the v0.2 rules are subject to the following release and lock-up schedule:

* **Immediate Release: 60%** of the reward tokens will be immediately credited to your account and are freely usable.
* **Lock-up: 40%** of the reward tokens will be temporarily locked.
* **Unlock Mechanism:** The locked portion of the tokens will be unlocked based on specific rules to be released **at the time of the Titan Network Mainnet launch**. Please follow official announcements for detailed information.

### Effective Date and Scope

* **Effective Date:** These v0.2 reward rules are **effective immediately as of April 14, 2025**.
* **Applicable Network:** These rules apply to all nodes operating within the **Testnet 4 (Test4)** environment. All subsequent rewards will be calculated and distributed according to this v0.2 version.

### Reference Link

* You can view the official reward calculation details page for Titan Testnet 4 via the following link:<https://test4.titannet.io/Calculation>