# Incentive Mechanisms

The following summarizes the incentive mechanisms to be incorporated into the protocol’s design:

### **Incentive Structuring**

Beamable’s incentive structure includes staking requirements for nodes, slashing (penalty deductions) for misbehavior, and tiered rewards based on node performance. The model draws inspiration from existing DePIN staking mechanics and a tiered rewards approach.

### **Staking Dynamics**

* The system is designed to require a minimum stake of $BMB for the nodes, complemented by delegated staking for broader community participation in network security and governance.
* Checker nodes receive rewards to ensure data integrity, with tiered rewards that adjust based on performance, maintaining high standards for service quality.

### **Additional Mechanisms**

* Beamable will develop a reputation system for nodes to encourage consistent performance. To this end, it will offers bonuses or higher rewards to nodes with a proven track record.
* Reward Vesting and Lockup Periods: To reduce sell pressure initially, Beamable will implement reward vesting for newly minted rewards to delay their distribution. This can be aligned with project milestones or specific compute performance metrics. Introducing early withdrawal penalties similar to Akash's model to discourage selling before rewards mature.

### **Compute credits**

Credits are purchased with the project’s native token $BMB, creating continuous demand, as used in similar protocols such as Helium and Akash.


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