Understanding where the TRX rewards for voting in governance comes from.

in Tron Fan Club2 years ago

In my previous post I showed you a very simple way to passively earn TRX rewards by simply voting for Super Representatives in the TRON governance system. Depending on your choice and amount of votes, you can begin passively earning TRX daily. This is a great way to utilize your stagnant TRX holdings in your wallet while also empowering the blockchain.

Apart from just earning passively, your votes also play a key role in the direction of the blockchain and influences major decision making. Each TRX is considered as a single vote. The bigger the amount of TRX "voted" makes the total stake of a certain super representative larger, and hence, more influential.

This means, it is always more profitable to vote with a higher amount of TRX. The bigger the amount voted into a high APR%, low total votes, higher ranked representative, the bigger the impact and bigger the profit.

But where does the reward come from?

These super representatives also take part in what we know as "witnesses". They produce blocks, or rather execute the production of blocks. As you know, TRON blocks are generated every 3 seconds. A single super representative can produce these blocks every 3 seconds and then the next super representative produces one more, and then the next and the cycle continues. For every block produced, the super representatives get rewarded with TRX.

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All the details of Super Representatives, Witness Ratio percentages, Voter rewards and more can be found in the tron protocol github here https://tronprotocol.github.io/documentation-en/mechanism-algorithm/sr/#reward-for-witnesses.

Apart from just the voter rewards, super representatives can decide to add more to the rewards given out from their own personal rewards or wallets, which then increase or decrease the APR% of your votes. This is how the reward system for voting on governance works.

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 2 years ago 

Very informative and helpful post brother. I was benefitted from your post. Thanks and keep on sharing such a quality and informative content.

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