> 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/5.-system-architecture-and-network-economics/5.8-validator-incentives-and-reward-distribution.md).

# 5.8 - Validator Incentives & Reward Distribution

Validator rewards are calculated per epoch using a transparent, performance-weighted formula:

```
Validator Reward = (bonded_stake × tallying_score / total_weighted_stake) × epoch_reward_pool
```

**Reward Sources:**

* `45%` of all network transaction fees
* Fixed annual emission of `0.6%` of total supply (activated at PoS transition)
* Governance-approved supplemental funding from the Redistribution Pool

**Delegation & Commission:**

* Delegators bond `$POLA` to active validators. Delegated stake contributes to voting weight and reward eligibility.
* Validators set a commission rate, adjustable with one-epoch notice. Commission is deducted before delegator payout.
* Distribution uses a transparent exchange-rate mechanism, ensuring proportional, fraud-resistant reward calculation.


---

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