1. What Are Block Rewards
Block rewards are a type of income generated from ETH staking. For details, refer to Understanding the Rewards Structure of Non-Custodial ETH Staking Services.
2. How Block Rewards Are Distributed
imToken uses a reward pool mechanism for distribution:
Step 1: Pooling
Block rewards earned by validators are added to a shared reward pool. For example:
- Validator #10001 is selected as a block proposer in Epoch 100, Slot 521, earning 0.01 ETH as a block reward.
- This reward is deposited into the reward pool.
Step 2: Count Active Validators
The system counts the number of validators that are active as of Epoch 100, Slot 521. For example:
- Assume there are 2,000 active validators (only those created via imToken staking).
Step 3: Equal Distribution
The reward pool is evenly divided among active validators:
0.01 ETH ÷ 2,000 = 0.000005 ETH per validator.
3. Why Use a Reward Pool
- Stable Earnings: Unlike Ethereum’s native mechanism where block rewards are rare and random, pooling ensures more consistent returns.
- Fair Allocation: Rewards are proportional to the number of validators a user operates.
4. Service Fee
As per Non-Custodial ETH Staking Service Pricing Update Notice, 20% of block rewards go to the service provider. The remaining 80% is shared equally among active validators.
5. Reward Distribution
Rewards are distributed in batches directly to the validator’s withdrawal address—the same address used to receive principal and staking rewards.
6. Notes
Block rewards are calculated and distributed as described above. In the future, as Ethereum undergoes hard fork upgrades or implements specific EIPs (Ethereum Improvement Proposals), the business model of the non-custodial ETH staking service may change. Please stay tuned to our service updates for the latest information.