Compensation Model

In the Gee blockchain, network validators play a crucial role in verifying transactions and ensuring the security of the ecosystem. Validators earn rewards for staking their GEE tokens to secure the network, with the rewards based on specific parameters that factor in the validator’s stake amount, staking duration, and network-wide GEE supply. Here’s a breakdown of the Gee Primary Network’s compensation model.

Core Components of the Validator Reward Formula

Reward Formula Overview; Validators earn rewards for staking GEE for a defined period, calculated as follows:

· Max Supply is the maximum GEE allowed in circulation.

· Current Supply is the amount of GEE currently in the network.

· Stake is the validator's GEE amount locked up during the staking period.

· Staking Period is the duration the GEE tokens are staked.

· Minting Period is set to 1 year (in seconds) and is used as the base reference period for staking rewards.

Effective Consumption Rate; The Effective Consumption Rate is a key element in determining rewards based on the staking period:

· Min Consumption Rate and Max Consumption Rate set boundaries for rewards. When staking duration is close to the Minting Period, the Effective Consumption Rate approaches the Max Consumption Rate, maximizing the reward.

· If the staking period equals the Minting Period, validators receive the highest possible reward, calculated by setting the Effective Consumption Rate to Max Consumption Rate in the reward formula.