> For the complete documentation index, see [llms.txt](https://mtt-network.gitbook.io/mtt-network-1/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mtt-network.gitbook.io/mtt-network-1/introduction/c.-validator-nodes/3-.-validator-incentive-mechanism.md).

# 3). Validator Incentive Mechanism

To incentivize validator nodes to actively participate in network maintenance, MTT Network has designed an incentive mechanism including block rewards and transaction fee distribution:

* **Block Rewards**: Whenever a validator successfully generates a new block, the network provides a certain amount of MTT tokens as a reward. The amount of block rewards depends on the network's overall economic model and token issuance plan, referring to MTT Tokenomics.
* **Transaction Fees**: Each transaction in the network generates a certain amount of GAS transaction fees, which are collected by validator nodes and proportionally distributed among validators participating in consensus and their delegators. The distribution of transaction fees is typically based on the validator's contribution.
* **Inflation Rewards**: These rewards come from the network's inflation model and transaction fee pool, which need to be agreed upon under the community governance framework.


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