Network Rewards

Gam3 Network Rewards are distributed from a Challenge every hour according to the emission schedule. These hourly rewards are allocated among all active Terra Keys that participate in the Challenge.

Although the total network reward for each Challenge is fixed by the emission schedule, the division of the Network Reward among the active and participating Terra Keys depends on several factors:

• The total supply of Gam3 and xGam3

• The number of keys operating for a given Challenge, and the reward tier of those keys.

When determining the total supply, please consider the following:

• The combined total of Gam3 and xGam3 will never exceed 21,000,000,000. Given the dynamic nature of the Gam3 ecosystem, accurately predicting the monthly token reward per operational Terra Key is not possible.

• 100% of gas is burned, so the supply may not always be inflationary and can experience periods of deflation.

When determining the number of operating keys, please consider the following:

• The total number of Terra Keys. The Gam3 Foundation will not sell more than 50,000 Terra Keys, a process expected to take 2-3 years. The price per Terra Key will increase over time.

• The monthly quantity of xGam3 per Terra Key will fluctuate based on the number of keys operated by a Terra Node and the reward tiers of those keys.

When determining the reward tier of Terra Keys, please consider the following:

• Each Terra Key has a 5% probability of participating in a Challenge, so some Terra Keys will not generate rewards from every Challenge.

• The probability of a Terra Key participating in a Challenge can be increased by staking (refer to Staking Explained).

• If keys are staked in a pool, that pool's Reward Tier will apply to all keys staked in the pool. The pool's Reward Tier is determined by the lower of (a) the pool's xGam3 staking capacity or (b) the xGam3 staked in the pool.

All Terra Keys that participate in a Challenge will receive an equal share of the Network Reward, proportionally divided.