Incentives and Penalties Formular

Equation 1 shows the different components of how Services are rewarded. The Service provider takes the base reward and covers expenses (discussed in Service Resource Management). Stakers, also expected to include the Service provider (who knows they are trustworthy), share a fraction of the stake reward based on how much they have staked.

Equation 2 shows The different components of how Services are penalised. The Service provider takes a base fine, and stakers lose a fraction of their staked funds.

The most accessible place to see and understand these fines is on the Pangea Build website.