8.3 Proof-of-Relay Rewards Distribution
The Proof-of-Relay (PoR) mechanism is the cornerstone of the ARX service layer. It aligns economic rewards with measurable performance, ensuring that nodes providing critical services like bandwidth, message routing, and data storage are compensated fairly based on their actual contribution to the network.
How the Reward Mechanism Works
The distribution process is automated and verifiable, following a three-step cycle:
Submission: Nodes submit verifiable telemetry data including latency, uptime, and message throughput to the consensus layer.
Aggregation: Validator committees aggregate these reports and cross-reference them with network-wide performance benchmarks to prevent spoofing.
Distribution: Smart contracts automatically calculate the final reward weight and distribute ARX tokens to the node's wallet.
Reward Structure & Roles
The following table outlines the distribution logic for the various infrastructure roles within the ecosystem.
Role
Reward Share
Primary Source
Key Function
Optional Services
Relay Node
30–40%
PoR Metrics
Routing encrypted data & VPN/eSIM traffic.
VPN relay, eSIM routing, bandwidth provisioning.
Storage Node
10–15%
PoS (Storage)
Hosting encrypted fragments & cloud backups.
Cloud storage, media hosting, backup redundancy.
Validators
25–30%
PoS Consensus
Validating blocks and verifying PoR metrics.
Governance backbone, state integrity.
Block Producers
+5% Bonus
Priority Stake
Finalizing blocks and maintaining ledger state.
High-performance relaying.
Delegators
10–15%
Validator Share
Staking ARX to support trusted validators.
N/A
DAO Reserve
5%
Treasury Pool
Funding audits, bounties, and liquidity support.
N/A
Performance Accountability (Slashing)
To maintain a high standard of service, ARX implements strict penalty rules for underperforming or malicious nodes. Nodes that fail to meet minimum uptime or provide false metrics are subject to slashing:
Soft Slashing (0.5–1%): Triggered by consistent downtime or high latency that disrupts the user experience.
Hard Slashing (1.5–2%): Triggered by failed verification, data tampering, or malicious routing behavior.
Efficiency Through Metrics The PoR structure ensures that "merit" is mathematically defined. By rewarding quality over quantity, ARX ensures a fast, reliable, and highly available decentralized network.
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