> For the complete documentation index, see [llms.txt](https://polarischain-1.gitbook.io/polarischain/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://polarischain-1.gitbook.io/polarischain/3.-cryptographic-foundations/3.8-proof-of-stake-transition-and-reward-architecture.md).

# 3.8 Proof-of-Stake Transition & Reward Architecture

The initial network phase operates with a static, foundation-approved validator committee. **Phase 5+ transitions to a decentralized Proof-of-Stake (PoS) model** with the following parameters:

<table data-header-hidden><thead><tr><th width="266.140625"></th><th></th></tr></thead><tbody><tr><td>Parameter</td><td>Specification</td></tr><tr><td>Minimum Validator Stake</td><td>1% of active network stake (relative threshold)</td></tr><tr><td>Voting Power Cap</td><td>10% per validator to prevent centralization</td></tr><tr><td>Validator Set Size</td><td>Uncapped, naturally constrained by voting cap</td></tr><tr><td>Unbonding Period</td><td>~24 hours (1 epoch)</td></tr><tr><td>Delegation</td><td>Fully supported; delegated stake contributes to voting weight</td></tr><tr><td>Commission</td><td>Validator-set, adjustable with one-epoch notice</td></tr></tbody></table>

Rewards are distributed from two sources: `45%` of transaction fees and a fixed annual emission rate (`0.6%` of total supply, activated post-PoS). Distribution is weighted by `bonded stake × performance score`, with commissions and delegator yields calculated via a transparent exchange-rate mechanism.


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