# Storage Node

## Rewards

Rewards for storage nodes are granted only when a storage miner node successfully passes a random challenge. The reward amount depends on the bonus pool of the current challenge round and the proportion of the miner's computing power in the entire CESS network. After receiving the reward, storage nodes need to initiate transactions to claim it.

**Source of Rewards**

**Source of Rewards**

**CESS Issuance**: Each Era generates a fixed number of coins autonomously. On average, there are 107 CESS per block for the first four years, and the issuance will be halved every four years.**Bonus Pool**: When users purchase storage space, the consumed CESS will be added to the bonus pool.

**Reward Calculation Formula**

**Reward Calculation Formula**

Rewards are distributed based on the bonus of the current round (total_reward) and the proportion of the miner's computing power (power) to the total network computing power (total_power). This creates new reward orders. The computing power of a storage miner is calculated as the sum of idle space multiplied by a coefficient and service space multiplied by another coefficient. The reward ratio between service and idle space is 7:3.

**Storage Miner's Computing Power:** power = (idle_space * 0.3) + (service_space * 0.7)

**Order Reward: **order_reward = total_reward * (total_power / power)

**order_reward** represents the total reward of a storage miner for this round.

After calculating the reward orders for the current round, the actual rewards to be distributed are calculated. 40% of the reward order will be immediately distributed, and the remaining 60% will be distributed linearly, with 1/60 of the amount in each distribution.

**Available Reward for this round๏ผ**

**Available Reward for this round๏ผ**

**avail_reward** = (reward order * 40%) + (reward per order * 1/60)

Each reward order will be linearly released 60 times before being removed. A storage miner can accumulate up to 60 reward orders.

**Storage miners receive rewards๏ผ**

After calculating the rewards to be released for the current round, rewards are temporarily stored in the reward pool, waiting for storage miners to claim them through transactions. To reduce gas fees for storage miners, they are allowed to accumulate rewards for multiple rounds and claim them all at once.

## Penalties

Penalties for storage miners penalize their current staked amount, and the penalty amount is related to the type of penalty and the storage miner's current total idle and service space. There are two types of penalties: a more severe liquidation penalty and a regular proof penalty.

**Storage Miner Total Space** = Service Space + Idle Space Penalty

**Penalty Cap** = 1000 CESS/TB * Storage Miner Total Space (rounded up)

**Proof Penalties: **

**Proof Penalties:**

Storage miners who fail to submit valid proofs in two consecutive challenges, as verified by TEE Workers, will receive proof penalties.

If the remainder of Storage Miner Total Space is less than 1TB, it will be considered as 1TB.

For two consecutive failed idle proofs, the penalty is 10% * Penalty Cap CESS.

For two consecutive failed service and idle proofs, the penalty is 25% * Penalty Cap CESS.

**Liquidation Penalties: **

**Liquidation Penalties:**

Miners who fail to complete challenges will face liquidation penalties:

A single failure results in a penalty of 30% * Penalty Cap CESS.

Two consecutive failures result in a penalty of 50% * Penalty Cap CESS.

Three consecutive failures result in a penalty of 100% * Penalty Cap CESS, and the remaining staked amount will be returned. The miner will be forcibly removed from the network.