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Staking rewards work the following way:

  1. On every produced block, ~114 KMA are created (equivalent to 3% of total issuance per year)
  2. This reward is allocated for later payout in the following way
    • 10% of this reward go to the collator that produced it to compensate for collator running expenses
    • The remaining 90% is split proportionally to KMA staked between everyone who delegated to this collator (this includes a collatorโ€™s self-bond)
  3. Two rounds later ( max. 12 hours ), the rewards accumulated in this way are paid out automatically, directly to the addresses of the collator and every delegator

For 3 years, the inflation from 1. is countered by equivalent token burns from treasury