11.2 Reward Allocation for Nodes

FreCx implements a deterministic, priority-based reward distribution model, where each block produces a fixed emission that is systematically allocated across node participants and ecosystem stakeholders.

At the protocol level, every block generates a:

Base Block Reward of 1.05 FreCx

This reward is divided into two primary components:

• a Node Reward Pool (fixed allocation)

• an Ecosystem / Tokenomics Allocation (BPS-based distribution)

This structure ensures predictable emission while allowing dynamic scaling of validator participation.

From the base reward of 1.05 FreCx, a fixed portion is reserved:

Node Reward Pool = 0.2285084 FreCx per block

This pool is exclusively allocated to network participants, including Sync nodes, Vault nodes, and Cluster nodes.

Sync Node Reward Allocation

The first allocation from the node pool is assigned to Sync nodes.

Sync rewards are calculated based on stake units, where 1 Sync unit = 2,500 FreCx staked

Each unit receives a fixed per-block reward: 0.000033 FreCx per Sync unit

The total Sync allocation per block is therefore:

Total Sync Reward = Number of Sync Units×0.000033

This ensures that Sync participation scales linearly with stake.

Vault Node Reward Allocation

After Sync allocation, the next portion of the node pool is distributed to Vault nodes.

Vault rewards are also stake-based, where 1 Vault unit = 1,000 FreCx staked

Each unit receives 0.0000096 FreCx per Vault unit

The total Vault allocation per block is:

Total Vault Reward=Number of Vault Units×0.0000096

This provides a scalable verification layer aligned with participation.

Cluster Node Reward Allocation (Residual Model)

After allocating rewards to Sync and Vault nodes, the remaining balance of the node reward pool is assigned to Cluster nodes.

Cluster Allocation=0.2285084−(Sync Reward+Vault Reward)

Each unit gets 0.0699584 per block that they produce. Unlike Sync and Vault nodes, cluster node rewards will be provided only for the nodes they produced.

This residual allocation model ensures:

• full utilization of the node reward pool

• dynamic adjustment based on network participation

• strong incentives for block production

Cluster rewards are distributed among active Cluster nodes, typically proportional to block production performance.