# Reward Mechanism

The reward mechanism governs how rewards are distributed to edge nodes in each epoch.  An epoch is defined as a one-week period starting from Thursday at 02:00 UTC and ending the following Thursday at 02:00 UTC.  The TOPS token reward system is designed to encourage high performance, distributed, and honest behavior across edge device operators.

It combines both deterministic and performance based components to incentivize optimal behavior.&#x20;

```
TOTAL_REWARD_PER_EPOCH = BASE_REWARD_POOL + BONUS_REWARD_POOL
```

### 🛠 Base Reward Pool

```
BASE_REWARD_POOL = BASE_REWARD * UPTIME_RATIO * TIER_MULTIPLIER
```

* `BASE_REWARD`: Static reward allocated per epoch.
* [`UPTIME_RATIO`](https://docs.ig3.ai/reward-mechanism/uptime-ratio): Float (0–1) indicating the percentage of time the node was online.
* [`TIER_MULTIPLIER`](https://docs.ig3.ai/reward-mechanism/tier-multiplier): Numeric multiplier based on device tier.

Ensures fair distribution based on device availability and hardware contribution.

### 🎯 Bonus Reward Pool

```
BONUS_REWARD_POOL = EPOCH_POOL * STAKING_WEIGHT * AI_TASK_SCORE * DENSITY_BOOST
```

* `EPOCH_POOL`: Dynamic bonus pool assigned for the epoch.
* `STAKING_WEIGHT`: Ratio of tokens staked on a device relative to others.
* [`AI_TASK_SCORE`](https://docs.ig3.ai/reward-mechanism/ai-task-score-and-machine-selection-algorithm): Performance-based score derived from completed AI tasks.
* [`DENSITY_BOOST`](https://docs.ig3.ai/reward-mechanism/density-boost): Incentive multiplier for operating in low-density regions.

Rewards behavior that improves network quality: staking, compute contribution, and geographic decentralization.

### ⚠️ Reward Payout

* Reward payouts are weekly, **every Thursday AFTER 2:00 AM UTC** once the epoch ends.
* **Payout times vary by device**, so check your device screen for your specific reward receive date and time.


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