FIP-101: Rewards Allocation
The FIP-101 Proposal: Fractal Standard Indexing Service (details here) incorporates the Index Mining Service into Fractal's block reward mechanism, forming a long-term and sustainable incentive system.
For FIP-101 roadmap, please refer to here.
Index Mining Service Block Rewards
This reward is shared among all eligible indexers and stakers proportionally, based on each participant's effective stake share per block.
Fractal Block Reward Basics
Fractal block mined structure is 1:1:1 (Merged Mining: 1 | Permissionless Mining: 1 | Index Mining: 1).
The block reward for each Fractal block is 25 FB until the next halving block height (#2100000).
For Index Mining Rewards
The official Index Mining block reward is 25 FB per block until the next halving block height (#2100000). This reward is shared among all eligible indexers and stakers proportionally, based on each participant's effective stake share per block.
During the public testing, Index Mining rewards will follow a linear release schedule, the proportion of each block reward distributed will gradually increase over time, eventually reaching 100% (25 FB)
Block rewards are first sent to a cold wallet address, then allocated to indexing operators and stakers after a settlement window.
Index Mining Rewards Details During Public Testing
The index mining reward mechanism during public testing is based on the official block reward mechanism of the Index Mining Service after launch, with phased adjustments. Core logic, such as the staking mechanism remains consistent with the long-term mechanism after index mining official launch on Fractal mainnet.
The main differences during the testing stages are:
Stage 1: The Index Mining block rewards release percentage starts at 30% (25 FB * 30%= 7.5 FB per block) and increases with each block until it reaches 60% (25 FB *60% = 15 FB per block).
Stage 2: The Index Mining block rewards release percentage picks up at 60% (15 FB per block) and continues increasing until it reaches 100%.
100% release will be reached on 2026-07-09
Each stage is estimated to last approximately 4 weeks, providing sufficient time for testing and any necessary corrections. Stages may be extended if additional testing time is required.
Any unreleased rewards may be reserved for a long-term node incentive/subsidy pool after the official launch
Public Testing Phase Reward Distribution Schedule
📌 Rewards Settlement Period
Please note that rewards from each block will become claimable after a 7-day settlement period (20160 blocks). Rewards earned during the first 7 days after joining Stage 1 will not be immediately available for claiming. Users will be able to claim rewards after the settlement cycle. Please wait for the 7-day settlement period to complete.
User Staking Yield Estimates Under Different Conditions
Assumptions for estimating Bob's staking yield:
Bob's staked amount: 100,000 FB
Daily Index Mining blocks: 960
Fractal Official Indexer commission: 10%
Fractal Official Indexer's valid proof submission rate is 100%, with no penalty
Reinvestment: Not included
APR calculation method: daily reward x 365 / staked principal
Daily reward estimates under different total network stake sizes and release rates (per 100,000 FB)
In the table below, each value is denominated in FB / day.
Total Network Stake
30%
37.50%
45%
52.50%
60%
70%
80%
90%
100%
5m FB
129.6
162
194.4
226.8
259.2
302.4
345.6
388.8
432
10m FB
64.8
81
97.2
113.4
129.6
151.2
172.8
194.4
216
15m FB
43.2
54
64.8
75.6
86.4
100.8
115.2
129.6
144
20m FB
32.4
40.5
48.6
56.7
64.8
75.6
86.4
97.2
108
30m FB
21.6
27
32.4
37.8
43.2
50.4
57.6
64.8
72
As shown in the table, when total network stake is 20m FB, after decentralized multi-node staking officially launches, each 100,000 FB can receive 108 FB in daily rewards.
APR estimates under different total network stake sizes and release rates
Total Stake
30%
37.50%
45%
52.50%
60%
70%
80%
90%
5m FB
47.30%
59.13%
70.96%
82.78%
94.61%
110.38%
126.14%
141.91%
10m FB
23.65%
29.57%
35.48%
41.39%
47.30%
55.19%
63.07%
70.96%
15m FB
15.77%
19.71%
23.65%
27.59%
31.54%
36.79%
42.05%
47.30%
20m FB
11.83%
14.79%
17.74%
20.70%
23.65%
27.59%
31.54%
35.48%
30m FB
7.88%
9.86%
11.83%
13.80%
15.77%
18.40%
21.02%
23.65%
Index Mining Reward Distribution and Settlement
🔹Stake Participants
In Public Testing stage 1, all user can participate in index mining and earn rewards.
The system continuously generates Index Mining rewards on a per-block basis. Users participate in index mining reward distribution by staking in support of a specific Indexer during both public testing and full rollout phases. Once the Indexer submits a valid proof, the reward for that block enters the distribution process.
The rewards for stake participants depend on:
Index Mining block rewards release ratio
Your share of the total stake under that Indexer
The commission set by the Index Operator
Whether the Index Operator submits a valid proof and whether a delayed submission penalty is triggered
👉 Specific reward details can be viewed on the detail page of the index operator you have staked with https://index-mining-beta.fractalbitcoin.io/
🔹Index Operators
In public testing stage 2, anyone can sign up their own indexer easily by adopting Fractal's lightweight indexer design and joining Fractal's data indexing network.
Participation requirement: Index Operators are required to submit valid proofs on a regular basis. Only Index Operators that submit valid proofs for allocated blocks are eligible to participate in reward distribution
Reward distribution: After each successful proof submission, index mining block rewards will be distributed to the Index Operator and its stakers
Fee Ratio: An Index Operator may set its own Fee Ratio (the percentage of a indexer's allocated FB staking rewards that is charged by the index operator as a fee)
Delayed submission penalty:
Proofs submitted within 1 hour are eligible for 100% of the reward
Proofs submitted after 1 hour are eligible for 95% of the reward
Settlement period: Each block reward becomes claimable after a 7-day settlement period, and the records can be tracked on the My Staking page
1. Index Mining Public Testing - Stage 1: Capped Staking with Single Indexer
-> Index mining public testing will begin with a controlled setup using a single indexer and capped staking participation.
Stage 1 is the first phase of the index mining service public testing. Its goal is to verify the stability of the Index Mining and staking mechanism under controlled participation scale. After the testing phase officially begins, the block rewards generated by each index mining block will be fully allocated to a fixed cold wallet address and gradually released according to the corresponding ratio based on the total network staking amount.
Participation Rules
• Staking is open to all addresses
• Minimum stake per address is 50 FB, no maximum stake limit.
2. Index Mining Public Testing - Stage 2: Multi-Indexer Testing
-> The system will expand to support multiple indexers, allowing third-party indexer participation to be tested in a broader environment.
Stage 2 is the second phase of index mining public testing. Its goal is to bring the Index Mining mechanism, reward distribution, and settlement mechanism closer to the official launch state.
Participation Rules
No staking amount limit per address
The third-party indexer can sign up their own indexer
Full Rollout: Official Launch of Index Mining and Staking
After official launch, the Index Mining reward mechanism enters long-term operation.
Reward Release
Each Index Mining block rewards: 25 FB
Stay tuned for more updates.
Notes: This page is intended to explain the reward mechanism for FIP-101 Index Mining rewards across different stages. The specific release schedules for Stage 1 and Stage 2 are subject to the applicable testing arrangements and official disclosures.
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