> For the complete documentation index, see [llms.txt](https://docs.gpu-fi.uk/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gpu-fi.uk/mining/reward-calculation.md).

# Reward Calculation

Details the calculation and distribution of hourly mining rewards.

### Hourly mining pool

$$
\text{Hourly Pool} =
\text{sum of tax revenue entering the mining pool during that hour}
$$

$$
\text{Miner Reward} =
\frac{\text{Miner Mining Power}}{\text{Total Mining Power}}
\times \text{Hourly Pool}
$$

Rewards are relative. A miner does not receive a fixed percentage of supply or a fixed APY. The reward share changes with:

* The miner's mining power
* Total mining power
* The amount entering the mining pool

{% hint style="warning" %}
Examples are illustrative. Mining rewards depend on trading activity and the amount of revenue entering the mining pool.
{% endhint %}

### Example: $30,000 daily trading volume

| Calculation            | Result                  |
| ---------------------- | ----------------------- |
| Daily trading volume   | $30,000                 |
| Creator tax            | 3%                      |
| Tax revenue            | $30,000 × 3% = $900/day |
| Mining pool allocation | 25% of tax              |
| Mining pool            | $900 × 25% = $225/day   |
| Hourly pool            | $225 ÷ 24 = $9.375/hour |

If a miner represents 10% of total mining power:

| Period  | Illustrative reward                     |
| ------- | --------------------------------------- |
| Hourly  | $9.375 × 10% = approximately $0.94/hour |
| Daily   | Approximately $22.50/day                |
| Monthly | Approximately $675/month                |

### Example: $100,000 daily trading volume

| Calculation            | Result                     |
| ---------------------- | -------------------------- |
| Daily trading volume   | $100,000                   |
| Creator tax            | 3%                         |
| Tax revenue            | $100,000 × 3% = $3,000/day |
| Mining pool allocation | 25%                        |
| Mining pool            | $750/day                   |
| Hourly pool            | $750 ÷ 24 = $31.25/hour    |

If a miner represents 10% of total mining power:

| Period  | Illustrative reward        |
| ------- | -------------------------- |
| Hourly  | $31.25 × 10% = $3.125/hour |
| Monthly | Approximately $2,250/month |

### How market activity affects rewards

Lower trading volume means less tax revenue. Less tax revenue means a smaller mining pool. Trading volume is controlled by market activity, so mining rewards fluctuate with ecosystem activity.

### Illustrative break-even assumption

The source uses an approximate break-even trading volume of $74,000/day. It assumes a 20% annual yield, approximately $1M in total value locked or lockup value, and 10% of supply locked.

This is an illustrative assumption. It is not a guaranteed threshold or a promised yield.


---

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