> 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/system-architecture/consensus-mechanism-pos/incentive-model.md).

# Incentive Model

PIJSChain uses a T+1 settlement model combined with a decaying reward function to control long-term token inflation and align participation incentives.

The incentive model operates according to several principles:

* Decaying Output\
  The total reward output per epoch follows a half-life-style decay curve. Early participants benefit from higher reward levels, while emissions gradually converge over time to ensure long-term economic sustainability.<br>
* Proportional Distribution\
  Individual staking-node rewards are proportional to each node’s share of effective stake relative to the network total, subject to a single-node effective stake cap that prevents excessive concentration.<br>
* Online Participation Constraint\
  Only staking nodes that are online and have valid heartbeat proofs are eligible to receive rewards for a given epoch. This enforces the principle that economic reward must correspond to actual infrastructure contribution.<br>
* Governance Adjustability\
  Core incentive parameters, including governance multipliers and effective stake limits, can be adjusted through on-chain governance without requiring a hard fork.<br>

Predictability Through Order-Based Staking

The order-based staking system also improves yield predictability. When creating a staking order, participants can estimate expected returns using:

* publicly visible total effective stake,
* transparent decay curves,
* fixed-duration order parameters.

This enables stakers to construct personalized strategies by combining orders of different sizes and durations, balancing liquidity preference, risk, and expected yield.


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