Validator Rewards

As part of the "Proof of Stake" system, the AIA Chain platform ensures security by requiring validators to lock up a portion of their AIA tokens as collateral. This deposit guarantees good behavior and helps prevent Sybil attacks. If validators produce invalid blocks or create an alternative chain (e.g., for double spending), they will lose a part of their staked tokens. Validator selection is determined by the "Proof of Stake Threshold" model, which sets the minimum number of tokens required to be allocated a validator "seat." This auction aims to provide fair (equal opportunity) allocation and allows as many participants as possible to engage in the network's validation process, thereby achieving meaningful decentralization. Validators can expect to participate in the validation process proportionate to their share of the total stake in the network. Each validator might take on one of the following roles:

1. Block Producer

2. Producer of Blocks

3. Hidden Validator

Regardless of their assigned role, validators' rewards are proportional to their totaetwork. This means there is no minimum threshold required to become a validator. By producing blocks and securing the network while ensuring data availability. Validators are chosen on an epoch basis, meaning each must perform an equal amount of work in validating blocks, providing data availability, and producing blocks. Rewards are distributed within each epoch and proportional to each participant’s stake. All transaction fees collected over time (minus a portion allocated as contract rebates) are burned by the system. Inflationary rewards are paid to validators regardless of the collected or burned fees. This means that the overall system inflation decreases proportionally to the amount of fees paid to the system. If network usage fees exceed the system's inflation rate, the system can turn deflationary.