Whitepaper Update: New Rules for the Reward Fund

September 10, 2026
Whitepaper Update: New Rules for the Reward Fund

We updated the eCurrency whitepaper this August. Two changes are worth walking through, and they both affect how validators get paid.

Validator rewards, pooled

Before, a validator kept a direct share of the fees in the block it produced. That's changed.

Now transaction fees, the migration fee, and slashing fines all go into one Network Reward Fund. Each block, the validator who produces it draws a fixed 1/500 share of the fund's balance, not a cut of that specific block's fees.

The effect is steadier income for validators, since payouts no longer swing with how many transactions happen to land in a given block.

Slashing, defined

The whitepaper now spells out slashing directly. If a validator signs two conflicting blocks in the same timeslot, called equivocation, it loses 10% of the stake involved. That penalty goes into the Network Reward Fund, same as fees and the migration fee.

This gives validators a concrete cost for double-signing, and it ties the penalty back into the same pooled system that funds rewards.

Full mechanics for the reward fund and slashing are in the whitepaper.

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