> For the complete documentation index, see [llms.txt](https://whitepaper.usegpu.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.usegpu.app/reward-economics/reward-calculation.md).

# Reward Calculation

Calculate epoch-level mining rewards using trading volume, creator-fee allocation, and each miner's share of total mining power.

Mining rewards move from trading activity to an epoch pool, then to miners by Mining Power. This calculation uses the Phase 1 creator-fee model.

{% hint style="info" %}
The effective mining share is `0.105%` of trading volume: `0.30% × 35%`. It is not an on-chain token tax. The token's on-chain tax is `0%`
{% endhint %}

### Calculation sequence

1. Calculate the creator fee from daily trading volume
2. Allocate 35% of that fee to the Mining Pool
3. Divide the daily Mining Pool across 48 epochs
4. Allocate each epoch pool by proportional Mining Power

| Variable | Definition             |      Value or unit |
| -------- | ---------------------- | -----------------: |
| `V`      | Daily trading volume   |            USD/day |
| `C`      | Creator-fee rate       |              0.30% |
| `M`      | Mining allocation      |                35% |
| `E`      | Epochs per day         |                 48 |
| `P`      | A miner's Mining Power | Mining Power units |
| `T`      | Total Mining Power     | Mining Power units |

### Core equations

$$
\text{Creator Fee Revenue} = V \times C
$$

$$
\text{Daily Mining Pool} = V \times C \times M = V \times 0.105%
$$

$$
\text{Average Epoch Pool} = \frac{\text{Daily Mining Pool}}{E}
$$

$$
\text{Miner Payout per Epoch} = \frac{P}{T} \times \text{Epoch Pool}
$$

The creator fee measures revenue from trading activity. The mining allocation selects the Mining Pool share of that fee. The epoch pool makes the daily pool available across 30-minute epochs. Mining Power determines each miner's proportional claim on that epoch pool.

### Worked example: $50,000 daily volume

#### Inputs

| Input                |   Value |
| -------------------- | ------: |
| Daily trading volume | $50,000 |
| Creator-fee rate     |   0.30% |
| Mining allocation    |     35% |
| Epochs per day       |      48 |

#### Calculation

$$
\text{Creator Fee Revenue} = $50{,}000 \times 0.30% = $150 \text{/day}
$$

$$
\text{Daily Mining Pool} = $150 \times 35% = $52.50 \text{/day}
$$

$$
\text{Average Epoch Pool} = $52.50 \div 48 = $1.09375 \approx $1.09
$$

If a miner has 10% of total Mining Power:

$$
\text{Illustrative Miner Payout} = 10% \times $1.09375 = $0.109375 \approx $0.11 \text{ per epoch}
$$

At the same 10% Mining Power share, the formula gives `$5.25/day` from a `$52.50/day` pool. The payout follows Mining Power, not token ownership alone.

### Worked example: $200,000 daily volume

#### Inputs

| Input                |    Value |
| -------------------- | -------: |
| Daily trading volume | $200,000 |
| Creator-fee rate     |    0.30% |
| Mining allocation    |      35% |
| Epochs per day       |       48 |

#### Calculation

$$
\text{Creator Fee Revenue} = $200{,}000 \times 0.30% = $600 \text{/day}
$$

$$
\text{Daily Mining Pool} = $600 \times 35% = $210 \text{/day}
$$

$$
\text{Average Epoch Pool} = $210 \div 48 = $4.375 \approx $4.38
$$

A miner's epoch payout remains their Mining Power share multiplied by `$4.375`. For example, a 10% Mining Power share corresponds to approximately `$0.44` per epoch.

### What determines the miner share

Token ownership, locked token amount, Mining Power, and Mining Pool share are separate concepts:

| Concept             | Meaning                                           |
| ------------------- | ------------------------------------------------- |
| Token ownership     | Tokens held by a participant                      |
| Locked token amount | Tokens committed to mining                        |
| Mining Power        | The measure used to calculate a miner's share     |
| Mining Pool share   | The resulting proportional claim on an epoch pool |

A token balance does not itself define the payout. The applicable Mining Power relative to total Mining Power determines the proportional share.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://whitepaper.usegpu.app/reward-economics/reward-calculation.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.