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update query reward machanism
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ianhe8x authored Sep 24, 2024
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8 changes: 0 additions & 8 deletions docs/subquery_network/introduction/reward-distribution.md
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@@ -31,14 +31,6 @@ Stake Rewards are allocated to all project types supported by the SubQuery Netwo

The current inflation rate on the SubQuery Network can be found on our [network parameters page](../parameters.md). The majority of network inflation acts as Stake Rewards, while the remainder is allocated to the SubQuery Treasury to fund various programmes.

## Cobb-Douglas Production Function

![Cobb Douglas production Function](/assets/img/network/cobb_douglas.png)

The query fee revenue that Node Operator (**_i_** ) can receive for the Flex Plan (PAYG) reward pool (**_p_**) is defined by the Cobb-Douglas production function. Where **_Reward~p~_** is the total SQT in the reward pool **_p_**, **_σ~ip~_** is the number of requests provided by Node Operator **_i_** for the reward pool **_p_**, **_σ~p~_** is the number of requests for reward pool **_p_**, **_θ~ip~_** is the staked amount for Node Operator **_i_** for reward pool **_p_**, **_θ~p~_** the total staked amount for the reward pool **_p_** across all participating Node Operators. **_α_** is a constant that changes the weight of these two parameters and how they affect total rewards.

This approach was championed by the 0x team, and in simple terms, means that revenue is allocated to competing Node Operators as a proportion of both requests answered and revenues staked.

## Minimum Staking Requirements

The beauty of the Cobb Douglas equation (above) is that a rational Node Operator must maintain a stable level of staked SQT relative to the work they do in order in each reward pool in order to receive optimal rewards from either of the reward sources. As a result, the SubQuery Network does not need to enforce many arbitrary staking requirements because Node Operators are incentivised to self-manage and maintain a stake or skin in the game (we do enforce a [minimum Node Operator Stake however](../node_operators/stake.md#how-much-sqt-should-you-stake)).

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