> For the complete documentation index, see [llms.txt](https://pijschain.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pijschain.gitbook.io/whitepaper/incentive-design/reward-distribution-and-ranking-based-incentives.md).

# Reward Distribution & Ranking-Based Incentives

Staking rewards are calculated and settled daily, providing transparency and predictable income flows for Hardware Operators. Rewards are distributed directly to designated withdrawal addresses without discretionary intervention.

In addition to base staking rewards, PIJSChain introduces a ranking-based incentive layer, allocating 5% of daily emissions to performance-driven rewards. This layer is designed to reward contribution quality rather than passive stake.

The ranking allocation is distributed as follows:

* 65% based on the number of active Hardware Operator nodes,
* 25% based on new Hardware Operator staking participation,
* 10% based on total effective stake ranking.

Further ranking mechanisms incorporate uptime and operational reliability, ensuring that stable and well-maintained infrastructure is consistently rewarded.

Hardware Operators exhibiting prolonged downtime, unreliable behavior, or malicious activity may face reward suspension, ranking exclusion, or stake slashing, depending on severity.


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