You signed in with another tab or window. Reload to refresh your session.You signed out in another tab or window. Reload to refresh your session.You switched accounts on another tab or window. Reload to refresh your session.Dismiss alert
description: Learn about Aztec network economics including reward distribution, sequencer and prover incentives, and the activity score system.
4
+
displayed_sidebar: conceptsSidebar
5
+
---
6
+
7
+
# Economics & Rewards
8
+
9
+
The Aztec network uses economic incentives to encourage honest participation and consistent operation. This page explains how rewards are distributed and what factors influence earnings.
10
+
11
+
## Reward Sources
12
+
13
+
Network participants earn rewards from two sources:
14
+
15
+
1.**Slot Rewards**: Protocol-funded rewards distributed each slot (inflationary)
16
+
2.**Transaction Fees**: Fees paid by users for transaction processing
17
+
18
+
## Slot Rewards
19
+
20
+
The protocol mints new tokens each slot as rewards. The current slot reward is **400 $AZTEC**, split between sequencers and provers:
Sequencers earn rewards for successfully proposing and finalizing blocks:
42
+
43
+
-**Slot share**: 70% of each slot reward (280 $AZTEC) goes to the block proposer, paid when the block is finalized on L1
44
+
-**Transaction fees**: Sequencers collect fees from users; a portion is burned via the base fee mechanism, and the remainder is split between sequencer and prover
45
+
46
+
## Prover Rewards
47
+
48
+
Provers earn rewards for generating validity proofs that finalize blocks:
49
+
50
+
-**Slot share**: 30% of each slot reward (120 $AZTEC), distributed among provers who participated in the epoch
51
+
-**Transaction prover fees**: Provers receive a portion of transaction fees, with the rate set by protocol parameters
52
+
53
+
### Activity Score and Reward Distribution
54
+
55
+
Prover slot rewards are not split equally. They are distributed based on each prover's **activity score**, which measures consistency of participation. The score:
56
+
57
+
-**Increases** by 125,000 per epoch of active proving
58
+
-**Decreases** by 100,000 per epoch of inactivity
59
+
-**Maximum**: 15,000,000 points
60
+
61
+
A prover's share of the reward pool is determined by a quadratic penalty formula:
62
+
63
+
```
64
+
shares = k - (a × (maxScore - score)²) / 1e10
65
+
```
66
+
67
+
Where `k = 1,000,000`, `a = 1,000`, and the minimum share is `100,000`.
68
+
69
+
At maximum activity score, a prover receives the full `k` shares. As the score drops, the quadratic term reduces shares increasingly aggressively, meaning small drops have minimal impact but extended inactivity significantly reduces earnings.
70
+
71
+
This design rewards long-term, consistent provers and discourages sporadic participation.
72
+
73
+
---
74
+
75
+
:::tip Learn More
76
+
-[Proof of Stake](../proof-of-stake/index.md) - How staking and validation work
77
+
-[Governance](../governance/index.md) - How protocol parameters (including rewards) can change
78
+
-[Running a Prover](../../operators/setup/running-a-prover.md) - Technical setup for provers
Copy file name to clipboardExpand all lines: docs/docs-network/concepts/governance/index.md
+12Lines changed: 12 additions & 0 deletions
Display the source diff
Display the rich diff
Original file line number
Diff line number
Diff line change
@@ -10,6 +10,18 @@ import Image from "@theme/IdealImage";
10
10
11
11
The Aztec network is governed by its community through an onchain governance system. This system allows the network to upgrade rollup contracts, adjust parameters, and evolve over time while maintaining security and decentralization.
12
12
13
+
## Quick Summary for Token Holders
14
+
15
+
If you're a token holder looking to participate in governance, here's what you need to know:
16
+
17
+
| Your Situation | How to Participate | What Happens |
|**I have staked tokens** (as sequencer or delegator) | Nothing required - you're already participating | Your voting power is automatically delegated to the rollup, which votes "yea" on proposals that passed sequencer signaling |
20
+
|**I want to vote differently than the default**| Delegate your voting power to yourself | You can cast your own votes on proposals |
21
+
|**I have tokens but haven't staked**| Lock tokens in the Governance contract | You gain voting power without staking rewards or slashing risk |
22
+
23
+
For step-by-step instructions, see [Voting on Proposals](../../users/voting.md).
24
+
13
25
## Design Goals
14
26
15
27
The governance system is designed around two core requirements:
Copy file name to clipboardExpand all lines: docs/docs-network/concepts/proof-of-stake/index.md
+78-1Lines changed: 78 additions & 1 deletion
Display the source diff
Display the rich diff
Original file line number
Diff line number
Diff line change
@@ -29,7 +29,7 @@ Validators must stake tokens on L1 to join the sequencer set. The staked tokens
29
29
30
30
**Activation Delay**: After staking, a sequencer needs to wait for an activation period before they can start proposing new blocks. This delay provides time for the network to recognize the new validator.
31
31
32
-
**Unstaking Delay**: Unstaking requires a delay to allow for slashing of dishonest behavior that may have occurred while the validator was active.
32
+
**Unstaking Delay**: Unstaking requires a delay to allow for slashing of dishonest behavior that may have occurred while the validator was active. See [Unstaking](#unstaking) for details on the specific delay periods.
33
33
34
34
### Stake Delegation
35
35
@@ -104,6 +104,83 @@ Because transaction data and attestations are not posted onchain, automatic slas
104
104
105
105
A sequencer must aggregate BLS signatures on slashing proposals and post them to L1 for slash execution. When a sequencer's balance is slashed below `MINIMUM_STAKING_BALANCE` (e.g., 50%), they are removed from the sequencer set.
106
106
107
+
## Unstaking
108
+
109
+
Unstaking is the process of withdrawing your staked tokens from the network. When you initiate a withdrawal, two delays start **in parallel**:
110
+
111
+
1.**Staking exit delay** — enforced by the Rollup contract
112
+
2.**Governance withdrawal delay** — enforced by the Governance contract (since staked tokens also carry voting power)
113
+
114
+
You must wait for **both** to pass before finalizing your withdrawal. The effective exit delay is whichever is longer.
115
+
116
+
### Staking Exit Delay
117
+
118
+
The Rollup contract enforces an exit delay to allow time for pending slashing conditions to be detected, and to prevent validators from quickly exiting after misbehaving.
Because staked tokens carry voting power via the GSE (Governance Staking Escrow), the Governance contract also enforces a withdrawal delay. This prevents governance attacks where someone could vote on a malicious proposal and immediately exit before it executes.
Copy file name to clipboardExpand all lines: docs/docs-network/operators/operator-faq.md
+23Lines changed: 23 additions & 0 deletions
Display the source diff
Display the rich diff
Original file line number
Diff line number
Diff line change
@@ -170,6 +170,27 @@ Error: Unable to get blob sidecar, Gateway Time-out (504)
170
170
- Running your own provides better reliability and eliminates timeouts
171
171
- See the [prerequisites guide](./prerequisites.md) for L1 infrastructure setup
172
172
173
+
## L1 Node Requirements
174
+
175
+
### Do I Need an L1 Archive Node?
176
+
177
+
No. You do not need an L1 archive node to run an Aztec node. Snapshot sync is the recommended approach and works with standard L1 full nodes.
178
+
179
+
To use snapshot sync, set `SYNC_MODE=snapshot` in your configuration.
180
+
181
+
#if(testnet)
182
+
### Consensus RPC and Blob Availability (Testnet)
183
+
184
+
On testnet, your L1 consensus (beacon) RPC endpoint must be able to serve **all blob data**. Standard beacon nodes only retain blobs for approximately 18 days (4096 epochs), which may not be sufficient.
185
+
186
+
To meet this requirement, you need a consensus node configured as either a:
187
+
188
+
-**Supernode**: Stores all 128/128 data columns regardless of validator staking weight. This provides full blob availability.
189
+
-**Semi-supernode**: Stores enough data columns (typically 64/128) to reconstruct blobs. This is sufficient for testnet participation.
190
+
191
+
This requirement is specific to testnet. On mainnet, standard beacon nodes with default blob retention are expected to be sufficient.
192
+
#endif
193
+
173
194
## Funding and Resources
174
195
175
196
### Insufficient L1 Funds
@@ -192,6 +213,8 @@ Error: insufficient funds for gas * price + value
Copy file name to clipboardExpand all lines: docs/docs-network/users/staking.md
+25Lines changed: 25 additions & 0 deletions
Display the source diff
Display the rich diff
Original file line number
Diff line number
Diff line change
@@ -56,6 +56,31 @@ Before staking, understand that your stake can be partially slashed if:
56
56
57
57
See [Slashing Concepts](../concepts/proof-of-stake/#slashing) for detailed information.
58
58
59
+
## Unstaking
60
+
61
+
When you want to withdraw your staked tokens, you must go through an unstaking process with a mandatory exit delay.
62
+
63
+
#if(testnet)
64
+
The exit delay for testnet is **2 days**. For a breakdown of how this is calculated, see [Unstaking Concepts](../concepts/proof-of-stake/#unstaking).
65
+
#else
66
+
The exit delay for mainnet is **14.6 days**. For a breakdown of how this is calculated, see [Unstaking Concepts](../concepts/proof-of-stake/#unstaking).
67
+
#endif
68
+
69
+
### How to Unstake
70
+
71
+
To unstake your tokens, use the [Aztec Staking Dashboard](https://stake.aztec.network/). The dashboard guides you through the unstaking process:
72
+
73
+
1.**Initiate withdrawal**: Select your validator and begin the exit process
74
+
2.**Wait for the exit delay**: Your tokens remain locked during this period
75
+
3.**Finalize withdrawal**: After the delay, complete the withdrawal to receive your tokens
76
+
77
+
If you've delegated stake, contact your operator or use the delegation interface to request unstaking.
78
+
79
+
### Important Considerations
80
+
81
+
-**Slashing Risk**: You can still be slashed during the exit delay if misbehavior is detected from when you were active
82
+
-**No Rewards During Exit**: You do not earn staking rewards during the exit delay period
83
+
59
84
## Next Steps
60
85
61
86
-[Delegate your stake](./delegation) if you prefer not to run infrastructure
0 commit comments