> ## Documentation Index
> Fetch the complete documentation index at: https://docs.cnho.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Mining Rewards

> Earn $OFO on Ethereum by blocks.

## **Reward Token: \$OFO (OffshoreDAO Governance Token)**

CNHO Stables application chain's block rewards are funded by the \$OFO token on Ethereum. This incentivizes validators and delegators, and supports the security and decentralization of the network.

## **Launch Parameters**

* Reward Start Height (TBD): Begins from block 5,000,000 on the CNHO Stables chain, or**when the number of active validators reach 200** .
* Base Reward: 2 OFO per block
* Future Adjustment: Block rewards can be adjusted dynamically through DAO proposals

## **Reward Distribution Mechanism**

Each block produces 2 OFO, distributed as follows:

**1. Validator Commission Reward:**

* The block proposer (validator) receives a commission based on their set rate
* Example: 10% commission = 0.2 OFO out of 2 OFO

**2. Delegator Rewards:**

* The remaining portion (e.g., 1.8 OFO) is distributed among all delegators under the validator based on their stake proportion
* Formula:

  reward = (delegator stake / total stake) \* distributable OFO

## **Example**

Validator A (commission rate: 10%) has a total stake of 10,000 CNHO

Delegator Alice has staked 1,000 CNHO

Block Reward: 2.00 OFO

Validator Commission: 0.20 OFO

Distributable to Delegators: 1.80 OFO

Alice earns: (1000 / 10000) \* 1.80 = 0.18 OFO

## **Reward Tracking and Calculation**

* All rewards are recorded via on-chain events (block height, validator, distribution)
* An off-chain Indexer periodically scans the chain and calculates cumulative rewards for each address
* Frontend dashboard supports address query, reward overview, and claim history display

## **User-side Reward Metrics**

Displayed on Dashboard after wallet connection:

* Total Earned: Total OFO earned
* Validator Commission: Reward as validator
* Delegator Rewards: Reward as delegator
* Claimed / Unclaimed / Claimable: Breakdown of claimed and pending rewards

## **Claiming Mechanism**

* All rewards are calculated off-chain and updated regularly
* Users can manually claim rewards via the dashboard (using their Ethereum address)
* Claims are verified using a Merkle Tree and signature system
* Actual transfer is executed by an Ethereum smart contract

## **Future Plans**

* ✅ Dashboard for reward tracking: Launched
* ⏳ Claim functionality: In development
* ⏳ Scheduled auto-distribution: Community governance to decide
* ✅ DAO parameter proposals: Enabled for reward rate, validator logic, etc.

## **Design Principles**

* Incentivize validators to produce blocks and attract delegators
* Encourage long-term staking to secure the chain
* Maintain \$OFO on Ethereum as the governance and liquidity hub