# Reward Calculation Method

The reward calculation in **MTT Network**, built using the Cosmos SDK, follows these principles:

* **Reward Pool Allocation:**\
  The network allocates a reward pool that is distributed periodically based on validator performance. Validators with higher token stakes or superior performance (e.g., active participation in governance or block validation) receive larger rewards.
* **Participation Metrics:**\
  Rewards are closely tied to a validator's participation, measured by uptime, number of blocks produced, and involvement in governance voting. Higher participation results in greater rewards.
* **Deflationary Mechanism:**\
  MTT Network adopts a deflationary model with periodic reward reductions, such as a “halving” mechanism every four years, to control inflation and maintain token value.

**Example Calculation:**\
If the block reward is 100 MTT tokens, the total staked amount in the network is 1,000,000 MTT, and a specific validator stakes 10,000 MTT, then the validator’s reward per block is:\
**100 MTT × (10,000 / 1,000,000) = 1 MTT**