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Fixed block reward rule vs proportional allocation rule: what’s the advantage?

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Jax.Network rewards miners in direct proportion to the effort of each miner. This reward system differs from the fixed block reward (as seen in the BTC blockchain), where the miner that contributes the highest computing resources wins the block reward. On Jax.Network, contributions to upholding network verifications are rewarded according to input. 

Small miners with minimal resources, little bandwidth, and low storage can coexist with corporate mining pools that can afford high computing resources. With Jax.Network, anyone with the computational power and storage can participate. How does it work?

Generalized proportional allocation rules

The Jax.Network reward system is based on generalized proportional allocation rules where the reward is based upon the amount of computing power inputted in mining Jax.Network’s shards (each shard as a branching off of the beacon blockchain).

  • All shard participants know the number of shards by referring to details printed on the block. 
  • Each shard reward is directly proportional to the average hash rate or a miner’s effort. 
  • And finally, that all coins in each shard share almost the same value. 

Based on these assumptions, each miner should get a reward based on the number of hashes they’ve contributed to the network. This means the reward is directly proportional to a miner’s input. A miner will generate more rewards if he can mine more shards. The earnings from transaction fees cover costs associated with data processing, extra storage, and fast internet bandwidth. 

Sharding and merged mining make this reward scheme possible both and help solve the scalability trilemma. 

Benefits of Jax.Network’s reward system

  1. Scalability of the network – The unique incentive system contributes to the expansion of the blockchain. The scheme attracts more miners – both big and small –  into the network, which means more hash power. This directly results in a scalable payment solution that can complete an infinite amount of transactions swiftly and successfully. 
  2. Network security – BTC alternatives who criticize the BTC blockchain face security issues once the halving event of its block reward diminishes all associated enumerations. Most miners who contribute to the network’s security will leave, and the network would suffer a vector attack. Equality and transparency of the non-fixed block reward rule on Jax.Network is attractive to miners, who are an integral part of security on any network—additionally Jax.Network employs a merged mining technique that protects the shards against 51 percent attacks.
  3. Friendly to novice miners and small-scale mining farms – The reward system on Jax.Network ensures equity in allocation. The reward system makes the environment favorable to both small and big mining pools. Starters with low computing resources and low opening capital can kick off their mining careers and still get rewarded for their effort in verifying the shards. This contrasts BTC and ETH, where rewards depend on the amount of computing resources and staked coins. 


In conclusion,instead of the fixed block rule for rewarding BTC miners, Jax.Network’s miners are awarded based on generalized proportional allocation rules complemented by sharding and merged mining, enhancing scalability and security. It also creates a friendly ecosystem where startups can easily participate in the mining process—using these innovations, Jax.Network achieves dependability, convenience, reliability, and security of its payment platform.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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