> For the complete documentation index, see [llms.txt](https://docs.qie.digital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.qie.digital/validator-rewards/validator-reward-system.md).

# 🎁 Validator Reward System

In the QIE network, validators play a crucial role in maintaining the blockchain — and are rewarded accordingly. Validators earn income from **three primary sources**:

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#### 1. 🧱 Block Rewards

* Validators earn **block rewards** each time they **successfully propose and validate a block**.
* This reward incentivizes validators to stay online, follow protocol rules, and help maintain consensus.

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#### 2. 💸 Transaction Fees

Transaction fees in QIE are split into two parts:

* 🔥 **Base Fees** — These are **burned**, permanently removed from circulation.\
  This helps reduce total coin supply over time (deflationary effect).
* 🏅 **Priority Fees (Tips)** — These are awarded to the **validator who validates the block**.\
  It serves as an extra incentive for validators to include and prioritize user transactions.

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#### 3. 🤝 Delegation Commissions

* Validators earn a **commission** on the staking rewards generated by their **delegators**.
* Each validator can set their own commission rate.

> ⚠️ **Delegators** receive the **remaining portion** of the staking rewards **after the validator's commission is applied**.

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#### 📌 Summary Table

| Source                 | Earned By                  | Notes                                                 |
| ---------------------- | -------------------------- | ----------------------------------------------------- |
| Block Rewards          | Block proposer & validator | For proposing and validating blocks                   |
| Priority Fees          | Block validator            | Tips from transactions included in the block          |
| Delegation Commissions | Validator                  | A percentage cut from rewards generated by delegators |