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.
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.
Block rewards are first sent to a cold wallet address, then allocated to indexing operators and stakers after a settlement window.
📌 Rewards Settlement Period
Please note that rewards from each block will become claimable after a 7-day settlement period (20160 blocks). 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 (per 100,000 FB)
In the table below, each value is denominated in FB / day.
Total Network Stake
100%
5m FB
432
10m FB
216
15m FB
144
20m FB
108
30m FB
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
Total Stake
100%
5m FB
157.68%
10m FB
78.84%
15m FB
52.56%
20m FB
39.42%
30m FB
26.28%
Index Mining Reward Distribution and Settlement
🔹Stake Participants
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. 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-staking.fractalbitcoin.io
🔹Index Operators
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)
Indexers can set their commission rate between 0% and 15%
Commission changes take effect after 7 days
Once a commission change is submitted, no further changes can be made until the pending change takes effect
Delayed submission decay:
Indexers must submit a valid hash proof within 720 blocks of block production.
After this deadline, a delay is applied for every additional 120 blocks of delay. Rewards follow a progressive delay schedule, with lighter reductions early and steeper reductions as the delay increases.
Rewards decay to zero at 1,440 blocks past the deadline.
Settlement period: Each block reward becomes claimable after a 7-day settlement period, and the records can be tracked on the My Staking page
• For every 3 Fractal blocks, 1 block is produced by Index Mining
• Each Index Mining block rewards: 25 FB per block
• Index Mining block rewards will be distributed among indexer operators and staking participants
• Minimum staking requirement will be reduced from 50 FB to 1 FB
• Anyone can participate in Index Mining & Staking and earn rewards. Participation Rules
Staking is open to all addresses
Minimum stake per address is 1 FB, no maximum stake limit.
• Anyone can run an indexer and participate in Index Mining to earn block rewards.
Disclaimer: This page is provided for informational purposes only and is intended to explain the FIP-101 Index Mining reward mechanism. The actual participation requirements, reward calculations, distribution results, and other applicable rules are subject to the live system operation and the information displayed on the relevant page.
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